New Delhi, Aug. 24 -- Air passenger service prices rose nearly 32 per cent year-on-year in the June quarter, marking the sharpest increase among the seven major services covered in the government's latest Service Producer Price Index (PPI) data released on Monday.
The Commerce and Industry Ministry's provisional Service PPI figures for the first quarter of 2026-27 cover banking, securities transactions, insurance, pension fund management, railways, air passenger services and telecom. The indices have 2022-23 as their base year.
According to the data, the Air (Passenger) Service Price Index recorded annual inflation of 31.94 per cent in the June quarter. A sequential comparison is not available because the price reference period for air passenger services is the 2025-26 financial year.
Railway passenger service prices increased 3.50 per cent annually during the quarter, unchanged from the rate recorded in the March quarter of 2025-26.
The banking sector showed mixed movements across the two banking-related measures. Inflation in the Banking Service Contribution sector increased to 6.90 per cent in the June quarter from 3.30 per cent in the previous quarter. At the same time, the Banking Service Price Index recorded deflation of 3.35 per cent, compared with deflation of 4.10 per cent in the March quarter.
The Securities Transaction Service Price Index also remained in deflation, with prices declining 1.32 per cent annually against inflation of 0.55 per cent in the March quarter. Pension fund management services recorded inflation of 5.20 per cent in the June quarter, compared with deflation of 0.76 per cent in the previous quarter. Insurance service prices rose 0.98 per cent, up from 0.68 per cent, while telecom prices increased 0.72 per cent, compared with 0.99 per cent in March.
The government also released final Service PPI estimates for the March quarter of 2025-26. The index tracks changes in the average prices received by producers for providing services.
The Centre plans to expand the coverage of Service PPI to include more services. It released its first PPI data for both goods and services in June as part of a broader move to improve measurement of price changes at the producer level.
The new framework is also expected to support a gradual shift away from wholesale price index (WPI)-based inflation numbers over the next five years. The move follows recommendations of a working group headed by former NITI Aayog member Ramesh Chand.
The panel, formed on December 30, 2024, was tasked with revising the WPI base year from 2011-12 to 2022-23 and developing the PPI with 2022-23 as its base year.
In its report submitted in April, Chand said PPI, covering Output PPI for goods and Services PPI, offers a more suitable measure of price changes from the producer's perspective and can support National Accounts and GDP compilation, including estimates of real value addition.
Published by HT Digital Content Services with permission from Millennium Post.