India’s Air Passenger Service Price Index rose sharply to 126.4 in the first quarter of FY 2026-27, compared with 106.9 in the previous quarter.
Pension fund management services also recorded a notable increase, while telecom and insurance indices remained unchanged.
Highlights
- Air Passenger Service Price Index jumped from 106.9 in Q4 FY26 to 126.4 in Q1 FY27.
- Air passenger services recorded a 31.94% year-on-year inflation rate during the quarter.
- Pension Fund Management Service Price Index increased from 103.8 to 113.3.
- Banking Service Price Index edged up to 100.9 from 100.5 in the previous quarter.
- Telecom and Insurance Service Price Indices remained unchanged at 112.2 and 102.9, respectively.
- Railway Service Price Index marginally increased from 103.3 to 103.4.
New Delhi: India’s Air Passenger Service Price Index recorded a sharp increase in the first quarter of FY 2026-27, emerging as the biggest mover among seven services covered under the latest Service Producer Price Indices released by the Ministry of Commerce and Industry.
According to provisional estimates released on August 24, the Air Passenger Service Price Index climbed to 126.4 in Q1 FY27 from 106.9 in Q4 FY26. Its year-on-year inflation rate stood at 31.94% during the quarter.
The Management of Pension Funds Service Price Index also recorded a significant sequential increase, rising to 113.3 from 103.8 in the March quarter. Its year-on-year inflation rate was 5.20%.
The Banking Service Price Index edged higher to 100.9 from 100.5. However, its YoY inflation remained negative at 3.35%. The Banking Service Contribution Index increased from 131.5 to 134.8, recording YoY inflation of 6.90%.
Meanwhile, the Securities Transaction Service Price Index declined to 89.9 in Q1 FY27 from 91.7 in the previous quarter. Its annual inflation rate stood at minus 1.32%.
Prices across some other services remained broadly stable. The Insurance Service Price Index was unchanged at 102.9, while the Telecom Service Price Index remained at 112.2. Their YoY inflation rates stood at 0.98% and 0.72%, respectively.
The Railway Service Price Index saw a marginal increase to 103.4 from 103.3. Within the segment, the Railway Freight Service Price Index increased slightly to 103.3, while the Railway Passenger Service Price Index remained unchanged at 103.5.
The indices use FY 2022-23 as the base year. The government clarified that overall weights have not been assigned to the seven services because they do not represent the entire services sector. However, sub-service weights have been calculated using FY 2022-23 data to arrive at individual service PPIs.
The government will release Service Producer Price Indices for the second quarter of FY 2026-27 on November 25, 2026.
