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Service producer prices showed a mixed trend across sectors in the first quarter of 2026-27, with prices rising in pension fund management, railways, insurance, telecom and air passenger services, while securities transaction and banking services recorded declines, provisional government data released on Monday showed.
The Service Producer Price Index (PPI), with 2022-23 as the base year, showed air passenger service prices rising 31.94 per cent year-on-year in Q1 FY27. Prices for management of pension funds rose 5.20 per cent, followed by railway services at 1.27 per cent, insurance at 0.98 per cent and telecom at 0.72 per cent, according to data released by the Ministry of Commerce and Industry.
Within railway services, passenger service prices rose 3.50 per cent year-on-year, while freight service prices increased 0.10 per cent.
Prices of banking services declined 3.35 per cent during the quarter, while securities transaction services fell 1.32 per cent. However, the Banking Service Contribution Index, which is reported separately, rose 6.90 per cent.
The government has so far compiled Service PPIs for seven services — securities transactions, banking, management of pension funds, insurance, telecom, railways and air passenger services. It has not assigned weights to these services as they do not cover the entire services sector, although sub-service-level weights have been used to calculate the PPI for individual services.
The Service Producer Price Index (PPI) was first released in June 2026 as part of the government’s new price-statistics framework accompanying the revision of the Wholesale Price Index (WPI) to the 2022-23 base year. The index was introduced to capture changes in prices received by producers of services and provide a producer-side measure for a sector that has not been adequately covered by existing wholesale price measures. The government said the index could also support economic analysis and eventually serve as a deflator in national accounts.
The government will release the Service PPI for the second quarter of 2026-27 on November 25.
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