Air Passenger Service Inflation Soars Nearly 32% In June Quarter, Railway Price Rise Holds Steady At 3.5%
New Delhi: Air passenger services recorded annual price inflation of nearly 32 percent in the June quarter, the steepest increase among seven service sectors covered by the government’s producer price data. The provisional Service Producer Price Indices (PPI) for the first quarter of FY27 covered banking, securities transactions, insurance, pension management, railways, air passenger services and…
In June 2024, air passenger services experienced a sharp price inflation of nearly 32%, marking the highest increase among seven sectors tracked by India's producer price data. This data was presented by the Commerce and Industry Ministry. The significant rise in air fares was attributed to factors including Iran-Israel tensions, which pushed up air ticket prices.
Railway passenger service inflation remained steady at 3.50%, unchanged from the previous quarter. Banking services saw an increase in price inflation to 6.90%, up from 3.30% in the previous quarter. Securities transaction services experienced a decrease, with a deflation of 1.32%, reversing the previous quarter's inflation of 0.55%.
Pension fund management services inflation rose to 5.20%, compared to deflation of 0.76% in the March quarter. Insurance inflation edged up to 0.98% from 0.68%, while telecom inflation eased to 0.72% from 0.99%. The government has plans to expand the Service Producer Price Index (PPI) framework, intending to cover more sectors and provide a better understanding of price changes across the economy.
This transition aims to gradually replace Wholesale Price Index-based inflation figures with Producer Price Index-based metrics over the next five years.
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