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Informist, Monday, Sept. 14, 2026

NEW DELHI – India's wholesale price index rose in August due to higher food and fuel inflation owing to the escalation of the war in West Asia, according to data released by the commerce ministry Monday. In Aug, WPI inflation was 9.92%, up from 9.78% in July.

At 9.92%, wholesale price inflation was higher than expected. In an Informist Poll, economists had estimated WPI inflation would be 9.8% in August. The WPI inflation print for June, as per the new series, was revised up to 9.97% from the provisional 9.87%. The new WPI series has 2022-23 (Apr-Mar) as the base year, updated from FY12 in the old series.

In June, the commerce ministry had released inflation data based on the new WPI series and new Producer Price Index. The new WPI series tracks 957 items, up sharply from 697 items that the FY12 series tracked.

The all commodities index of the WPI was up 0.7% in August on month. WPI core inflation slipped to 8.1% in August from 8.2% in July. 

Food inflation rose to 7.05% in August from 6.65% in July, largely led by the fruits and vegetables, milk, spices, and sugar segments. "We expect food inflation to harden further in September-October 2026, on the back of an unfavourable base, as well as the stronger-than-usual sequential hardening in prices of some food items such as sugar, which could sour sentiment during the festive season," Rahul Agrawal, principal economist at ICRA, said in a note.

Inflation in primary articles, which has the maximum weight in the index, eased to 7.76% in August from 8.52% in July. Among primary articles, food inflation rose to 5.67% last month from 5.44% in July, while inflation in non-food articles moderated to 14.79% in August from 17.66% in July. The food index for wholesale prices rose 1.2% in August. 

Fuel and power inflation rose to 22.93% in August from 20.05% in July, reflecting the impact of rising crude oil prices due to disruption of supply in the wake of the war in West Asia. Since the escalation of the war, crude oil prices have surged to above the $100 per barrel level after moderating to around $71 per barrel in early July amid peace talks between the US and Iran. Brent crude oil was traded at $107.50 per barrel Monday. The fuel and power index was up 2.8% on month in August.

Within the fuel and power segment, crude petroleum and natural gas inflation was 34.41% in August from 26.99% in July. Crude oil inflation was up 41.67% last month as compared to 26.04% in July. Mineral oils inflation also rose last month to 38.48% from 32.40% in July. "Besides, the rise in global commodity prices is likely to keep fuel and core-WPI prints elevated in the near term, which would exert pressure on the headline WPI inflation over the next few months," Agrawal said.

Manufacturing products' inflation rose to 8.37% in August from 8.29% in July. The WPI index for manufactured products rose 0.4% sequentially in August.

In the first five months of the financial year 2026-27 (Apr-Mar), WPI inflation was 9.56%, compared to a deflation of 0.2% a year ago. Primary articles inflation was 6.45% in Apr-Aug, up from (-)2.60% in the corresponding period a year ago. Food inflation was 4.57% in Apr-Aug, up from (-)3.71% a year ago. 

In Apr-Aug, inflation in the manufactured products and fuel and power segments was 7.78% and 25.20%, respectively. A year ago, inflation in the manufactured products and fuel and power segments was 1.62% and (-)3.73%, respectively.

The recently-launched output Producer Price Index, which tracks output factory gate prices, was 110.8 in August, up from 109.9 in July. The output Producer Price Index for Apr-Aug was 109.9, up from 100.4 in the same period a year ago.

The trial Input Producer Price Index for all manufacturing industries fell to 104.2 in August from 105.9 in July. The Input Producer Price Index for manufacturing industries was down 1.6% on month in August, which was flat sequentially in July.

ICRA expects WPI inflation to exceed 9.5-10% in Sept-Oct. The rating agency sees the wholesale price index inflation rising till October "before cooling thereafter aided by a favourable base, unless global energy, and commodity prices rise further from the current levels."

The following table details the sequential and annual increase in the main components of the WPI:

Source: Ministry of Commerce and Industry

End

US$1 = INR 95.55

Reported by Radhika Tiwari and Shweta

Edited by Pankaj Aher

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