India’s Wholesale Inflation Rises to 9.92% in August as Fuel and Power Prices Surge

India’s wholesale price index (WPI)-based inflation rose marginally to 9.92 per cent in August from 9.78 per cent in July, according to data released by the Commerce Ministry on Monday.

The rise was largely driven by a sharp increase in inflation in the Fuel and Power segment, while inflation in Primary Articles moderated during the month. Manufactured products recorded a slight increase in their inflation rate.

The All Commodities WPI stood at 110.8 in August, compared with 110.0 in July 2026.

Inflation in the three major groups — Primary Articles, Fuel and Power, and Manufactured Products — stood at 7.76 per cent, 22.93 per cent and 8.37 per cent, respectively, in August. In July, the corresponding rates were 8.52 per cent, 20.05 per cent and 8.29 per cent.

The indices for Primary Articles, Fuel and Power, and Manufactured Products rose to 118.1, 108.3 and 108.8, respectively, in August from 117.2, 105.4 and 108.4 in July.

Wholesale food inflation also accelerated during the month. The WPI Food Index recorded year-on-year inflation of 7.05 per cent in August, compared with 6.65 per cent in July.

According to the government data, major contributors to the overall increase in WPI inflation included mineral oils containing petroleum products, food articles, manufactured food products, basic metals, non-food articles, and chemicals and chemical products.

The government also revised the final WPI figures for June. The index for June was revised upward to 110.3 from the provisional estimate of 110.2. Consequently, WPI inflation for the month was revised to 9.97 per cent from the earlier provisional estimate of 9.87 per cent.

The final WPI estimate for June 2026, based on the 2022-23 base year, was prepared using a weighted response rate of 99.3 per cent. The provisional WPI estimate for August was compiled with a weighted response rate of 84.4 per cent.

The government also revised the final Output Producer Price Index (PPI) for June to 110.0 from the provisional estimate of 109.9.

Meanwhile, the trial Input PPI for the manufacturing sector stood at 104.2 in August on a provisional basis. The June figure was revised to 105.9 from the provisional estimate of 107.1.

The August data indicate that wholesale price pressures remain elevated, particularly in the fuel and power segment. The movement in wholesale prices will be closely watched for its potential impact on input costs for manufacturers and businesses and, eventually, consumer prices.