India’s service price gauge shows mixed Q1 trends
India's Service Producer Price Index (Service PPI) revealed mixed trends in the first quarter of FY27, with air passenger service prices surging 32% year-on-year while other service categories experienced varied growth. The data, released quarterly, provides a glimpse into price movements on the producer side of the services economy, though it currently only covers seven services, not the entire sector.
The Air Passenger Service Price Index jumped to 126.4 in Q1 FY27 from 106.9 in Q4 FY26, marking a 31.94% increase. Other services also showed differing movements, with pension management inflation at 5.2%, railway services at 1.27%, insurance at 0.98%, and telecom services at 0.72%.
In contrast, the Banking Service Price Index fell 3.35% year-on-year, and the Securities Transaction Service Price Index declined 1.32%. The government is currently compiling the index for seven services, including banking, securities transactions, insurance, pension funds, railways, air passenger services, and telecom.
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