Government releases Service PPI estimates for Q1; banking index rises
The government on Monday released provisional estimates of the Service Producer Price Indices (SPPIs) for the first quarter of 2026-27, with banking, pension fund management and transport services sectors showing improvement.
As per the data released by the Ministry of Commerce & Industry, the Services PPI for banking services rose to 100.9 in Q1 FY27 from 100.5 in the previous quarter, while the Banking Service Contribution Index increased to 134.8 from 131.5.
On a year-on-year basis, the Banking Service Contribution Index recorded a 6.9 per cent rise in Q1 FY27, accelerating from 3.30 per cent in the preceding quarter.
The Management of Pension Funds Service Price Index also strengthened, rising to 113.3 in Q1 FY27 from 103.8 in Q4 FY26. Its year-on-year growth stood at 5.20 per cent, compared with a contraction of 0.76 per cent in the previous quarter.
The Insurance Service Price Index remained unchanged at 102.9 in Q1 FY27, while its year-on-year inflation increased to 0.98 per cent from 0.68 per cent in the preceding quarter.
In addition, telecom services also remained stable with the Service Price Index holding at 112.2.
On a year-on-year basis, telecom service prices rose 0.72 per cent in Q1 FY27.
Moreover, railway services continued to show a steady trend with overall index rising marginally to 103.4 from 103.3 in Q4 FY26. Also, railway passenger service prices remained unchanged at 103.5, while freight service prices edged up to 103.3.
The Air Passenger Service Price Index rose sharply to 126.4 in Q1 FY27 from 106.9 in the previous quarter, with year-on-year growth at 31.94 per cent.
Meanwhile, the Securities Transaction Service Price Index stood at 89.9, compared with 91.7 in Q4 FY26. Its year-on-year movement was negative at 1.32 per cent.
The Service PPIs cover seven services and have a base year of 2022-23.
However, the indices do not carry weights across services as they do not cover the entire services sector, according to the government.
Additionally, the Service PPI data for Q2 FY27 will be released on November 25, 2026.
