Wholesale inflation falls marginally
Key Highlights:
- WPI inflation eased to 9.78% in July from 9.87% in June.
- Fuel and power inflation declined sharply to 20.05%.
- Food article inflation eased marginally to 5.44%.
- Manufactured product inflation increased to 8.29%.
- The July reading marks the first month-on-month decline under the new WPI series.
New Delhi, August 14: India’s wholesale price inflation eased marginally to 9.78 per cent in July 2026 from 9.87 per cent in June, according to provisional government data released on Friday. The decline was supported by cooling prices in fuel and power as well as food articles.
This is the first month-on-month decline in WPI inflation since the government introduced the new wholesale price index series with 2022-23 as the base year.
Wholesale inflation had been moving higher since the beginning of the current financial year, with geopolitical tensions in West Asia and disruptions around the Strait of Hormuz affecting crude oil and fertiliser costs. These pressures also had spillover effects on food prices.
According to the Commerce and Industry Ministry, mineral oils, food articles, basic metals, non-food articles, manufactured food products, and chemicals and chemical products were among the major drivers of wholesale inflation in July.
Inflation in the fuel and power segment declined sharply to 20.05 per cent in July from 27.41 per cent in June. Food article inflation also eased marginally to 5.44 per cent from 5.49 per cent during the same period.
However, manufactured products recorded an increase in inflation. The segment’s inflation rate rose to 8.29 per cent in July from 7.48 per cent in June.
The wholesale inflation reading comes after retail inflation also remained elevated. India’s consumer price inflation rose to 4.45 per cent in July from 4.38 per cent in June, mainly due to higher food prices.
The Reserve Bank of India’s Monetary Policy Committee earlier this month kept the benchmark policy rates unchanged at 5.25 per cent. The central bank has projected retail inflation at 5 per cent for FY27, citing concerns over deficient and uneven monsoon conditions amid El Niño conditions.
The latest WPI data indicate that while some cost pressures eased in July, wholesale price inflation remains high, particularly across fuel and manufacturing-related categories.
