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India’s August Wholesale Inflation Climbs on Food, Fuel Pressures

India’s August Wholesale Inflation Climbs on Food, Fuel Pressures
August WPI inflation hits 9.92%: West Asia conflict, fuel prices drive wholesale inflation · financialexpress.com

Wholesale prices in India rose faster in August 2026.

The increase means businesses paid more for many goods before they reached consumers.

Food prices went up, and prices for manufactured products also reached a high.

Fuel and electricity-related prices rose especially sharply.

The fuel increase was linked partly to higher oil costs.

The West Asia conflict and a blockade near the Strait of Hormuz disrupted an important oil route.

More expensive fuel and fertiliser then added pressure to food prices.

Experts said businesses may face higher costs and tighter profit margins.

The Reserve Bank of India is watching the situation, and analysts said it could consider small rate increases if tensions continue.

Key facts

August WPI inflation
9.92%
July WPI inflation
9.78%
Food-index inflation
7.05% in August, up from 6.65% in July
Manufactured-products inflation
8.37%, up from 8.29% in July
Fuel-and-power inflation
22.93%, up from 20.05% in July
Primary-articles inflation
7.76%, down from 8.52% in July
WPI index
110.8 in August, compared with 110.0 in July
RBI policy rate
5.25% at its previous meeting

Quotes

Rajeev Juneja

President of the PHD Chamber of Commerce and Industry

“The latest movement in wholesale prices warrants close monitoring, particularly from the perspective of industrial input costs, business margins and competitiveness. The increase in WPI inflation has been accompanied by significant price pressures in fuel and power, manufactured products and selected primary commodities”
financialexpress.com

Commerce and Industry Ministry

Indian government ministry that released the wholesale price index data

“Across groups, mineral oils (containing petroleum products), food articles, manufacture of food products, manufacture of basic metals, non-food articles, and manufacture of chemicals and chemical products have been major drivers of WPI inflation in August 2026.”
m.rediff.com

Sources

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