India’s new service price gauge shows mixed Q1 trends; Air (Passenger) Service Price Index up 32%
Air passenger service prices jumped nearly thirty-two percent year-on-year in the first quarter of FY27. Other services showed mixed price trends, with banking and securities transactions declining. Management of pension funds and railway services recorded modest price increases during this period. This new Service Producer Price Index offers an early view of producer-level price movements. The…
India's latest Service Producer Price Index (Service PPI) revealed mixed trends in Q1 of FY27, with the Air Passenger Service Price Index soaring 32%. The data covers only seven services, providing a glimpse of price movements within the producer side of the services economy.
The Air Passenger Service Price Index climbed from 94.3 in Q2 FY26 to 126.4 in Q1 FY27, marking a remarkable 31.94% year-on-year increase. Other services, such as banking, securities transactions, insurance, management of pension funds, railways, and telecom, exhibited varied price changes. While the Banking Service Price Index dropped 3.35% year-on-year, the Securities Transaction Service Price Index fell 1.32%.
The government is using the Service PPI to track price changes at the producer level, unlike the retail inflation which measures prices paid by households. Currently, the index includes banking, securities transactions, insurance, management of pension funds, railways, air passenger services, and telecom. The index uses 2022-23 as its base year and is released quarterly.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Air passenger service prices rise 32% in June quarter; rail fares up 3.5% economictimes.indiatimes.com
