Air passenger services recorded a significant increase in prices during Q1 FY27, with the Air (Passenger) Service Price Index rising to 126.4 from 106.9 in Q4 FY26.
This represented a 31.94 per cent year-on-year increase, making air passenger services the fastest-rising category among the services covered under the Service PPI framework.
The Service PPI is designed to provide a systematic measure of price movements at the producer or service-provider level and complement existing price indicators such as the Wholesale Price Index and Consumer Price Index.
Banking Services Show Mixed Trends
Banking services recorded divergent movements during the quarter.
The Banking Service Price Index increased marginally to 100.9 in Q1 FY27 from 100.5 in Q4 FY26. Despite the quarterly increase, the index remained in negative territory on a year-on-year basis, declining 3.35 per cent.
At the same time, the Banking Service Contribution Index rose to 134.8 from 131.5. Its year-on-year growth accelerated to 6.90 per cent, compared with 3.30 per cent in the previous quarter.
Pension Fund Management Prices Rise
The Management of Pension Funds Service Price Index also recorded a notable increase, rising to 113.3 in Q1 FY27 from 103.8 in Q4 FY26.
The index registered 5.20 per cent year-on-year growth during the quarter, marking a turnaround from the 0.76 per cent contraction recorded in the previous quarter.
Insurance Prices Remain Stable
Insurance service prices remained broadly stable during Q1 FY27, with the Insurance Service Price Index at 102.9.
However, year-on-year price growth increased slightly to 0.98 per cent, compared with 0.68 per cent in Q4 FY26.
Telecom Service Prices Hold Steady
The telecom sector also recorded limited movement in service prices. The Telecom Service Price Index remained unchanged at 112.2 during the quarter.
On a year-on-year basis, telecom service prices increased 0.72 per cent in Q1 FY27, lower than the 0.99 per cent growth recorded in the preceding quarter.
Railway Services See Modest Price Movement
Railway services recorded only marginal changes during the quarter, with the overall Railway Service Price Index increasing to 103.4 from 103.3.
The index recorded 1.27 per cent year-on-year inflation in Q1 FY27.
Within the railway services category, the Railway Passenger Service Price Index remained unchanged at 103.5, while year-on-year inflation stood at 3.50 per cent.
The Railway Freight Service Price Index edged up to 103.3 from 103.2, with annual price growth at 0.10 per cent.
Securities Transaction Service Prices Decline
In contrast to most of the other services, securities transaction services recorded a decline in prices.
The Securities Transaction Service Price Index fell to 89.9 in Q1 FY27 from 91.7 in Q4 FY26. Its year-on-year movement was negative at 1.32 per cent, compared with 0.55 per cent growth in the preceding quarter.
New Framework To Track Service-Sector Prices
The Service PPI framework has been introduced to expand the measurement of price movements across India’s services sector and complement existing inflation indicators, including the Wholesale Price Index and Consumer Price Index.
The Ministry of Commerce and Industry has adopted 2022-23 as the base year for the Service PPI and will release the index on a quarterly basis.
The latest release contains provisional estimates for Q1 FY27 and final estimates for Q4 FY26.
The framework currently covers seven services. The services do not carry weights at the aggregate level because the selected categories do not represent the entire service sector. However, sub-service-level weights based on FY 2022-23 data have been used to calculate the PPI for individual services.
The framework is intended to provide a more systematic picture of price changes at the service-provider level and strengthen the statistical measurement of India’s expanding service economy.
Q2 FY27 Service PPI Data Due On November 25
The Ministry said the Service PPI data for the second quarter of FY27 will be released on November 25, 2026.
The quarterly releases are expected to provide a regular measure of price movements across the selected service categories and supplement the country’s existing inflation and price-statistics framework.
Keywords: Service PPI, Service Producer Price Index, Q1 FY27, air passenger prices, air service prices, Commerce Ministry, Industry Ministry, India inflation, banking service prices, pension fund services, insurance prices, telecom prices, railway service prices, securities transaction services, 2022-23 base year, service sector
