Wholesale inflation in India climbed to 9.92% in August from 9.78% in July, with higher prices across food, fuel and manufactured goods adding to inflationary pressures. Government data showed that the increase was supported by significant price movements across several major components of the Wholesale Price Index (WPI).

Key Highlights

• Wholesale inflation in India rose to 9.92% in August from 9.78% in July, driven by food, fuel and manufactured goods.
• Fuel and power inflation hit 22.93% and manufactured products had a series-high wholesale inflation of 8.37%.

The wholesale inflation in India is coming on the back of a wider economic slowdown, linked to the global increases in prices of crude oil and fertilizers, and affected by the upsets caused by West Asia conflict and the Strait of Hormuz blockade.

Food Inflation Rises in August

Continued pressure on the food index of wholesale prices saw inflation rise to 7.05% in August, up from 6.65% in July.

The Commerce and Industry Ministry noted that the food articles and manufactured food products were the major contributors in the month to WPI inflation.

Manufactured Goods Inflation Hits Series High

Wholesale inflation in manufactured products increased to an all-time high of 8.37% in August from 8.29% in July.

Wholesale prices rose in a number of commodity groups, the ministry said, noting manufactured food products, basic metals and chemicals and chemical products as top contributors.

The rise in manufactured goods inflation points to continued cost pressures across several industrial segments.

Fuel and Power Inflation at 22.93%

The fuel and power basket recorded WPI inflation of 22.93% in August. Mineral oils, including petroleum products, were among the major drivers of wholesale inflation during the month.

Higher global crude prices have emerged as a significant concern for India, given the country’s dependence on imported crude oil. The West Asia conflict and the resulting disruption around the Strait of Hormuz have added to uncertainty surrounding global energy prices.

Higher energy and fertiliser costs can also feed into food prices by increasing transportation and agricultural input costs.

Also Read: Wholesale Inflation Rises to 9.87% in June on Food and Energy Prices

Mineral Oils, Metals and Chemicals Drive WPI

According to the Commerce and Industry Ministry, mineral oils, food articles, manufactured food products, basic metals, non-food articles, and chemicals and chemical products were the major drivers of WPI inflation in August 2026.

The continued increase in wholesale prices suggests that inflationary pressures remain broad-based across commodities and manufacturing segments.

RBI Keeps Policy Rate at 5.25%

The Reserve Bank of India’s Monetary Policy Committee retained the benchmark policy rate at 5.25% at its latest meeting.

The central bank projected retail inflation at 5% for FY27, citing deficient and uneven South-West monsoon conditions amid El Nino conditions.

The rise in WPI inflation will remain an important factor for businesses and policymakers as higher input costs could influence production expenses and consumer prices in the months ahead.