<p>The government will come out with a Producers Price Index (PPI) next month for 10 services, including telecom and railways on experimental basis, a government official said on Tuesday.</p>.<p>The move will help track inflation in these services, which will also include ports, postal, insurance, banking, transportation and air travel.</p>.<p>“Services PPI will be released next month,” the official said.</p>.<p>Two major indices are used currently for tracking price movement - Wholesale Price Index (WPI) and Consumer Price Index (CPI).</p>.<p>While the WPI measures price movement of goods in wholesale markets, the CPI tracks inflation at retail level and also includes certain services.</p>.<p>While the incidence of taxes are accounted for in WPI and CPI, the PPI would reflect the cost at producers point sans taxes.</p>.<p>PPI measures the average change in the price a producer receives for his goods/services sold in the domestic market/exports.</p>.<p>In case of railways, price movement would be tracked for freight tariff and passenger fares. On the other hand, the index of banking would include direct services and fees.</p>.<p>The PPI for services assumes significance the sector contributes about 60%in the country’s gross domestic product (GDP).</p>
<p>The government will come out with a Producers Price Index (PPI) next month for 10 services, including telecom and railways on experimental basis, a government official said on Tuesday.</p>.<p>The move will help track inflation in these services, which will also include ports, postal, insurance, banking, transportation and air travel.</p>.<p>“Services PPI will be released next month,” the official said.</p>.<p>Two major indices are used currently for tracking price movement - Wholesale Price Index (WPI) and Consumer Price Index (CPI).</p>.<p>While the WPI measures price movement of goods in wholesale markets, the CPI tracks inflation at retail level and also includes certain services.</p>.<p>While the incidence of taxes are accounted for in WPI and CPI, the PPI would reflect the cost at producers point sans taxes.</p>.<p>PPI measures the average change in the price a producer receives for his goods/services sold in the domestic market/exports.</p>.<p>In case of railways, price movement would be tracked for freight tariff and passenger fares. On the other hand, the index of banking would include direct services and fees.</p>.<p>The PPI for services assumes significance the sector contributes about 60%in the country’s gross domestic product (GDP).</p>