Archive · 14 Sep 2026
India’s August Wholesale Inflation Nears 10% on Fuel, Food
Wholesale prices in India rose faster in August.
These are the prices businesses pay before goods reach shoppers.
Overall wholesale inflation increased to 9.92% from 9.78% in July.
Fuel and power prices rose especially sharply, partly because global energy became more expensive.
Food prices also increased, including prices for some food products.
Manufactured goods such as chemicals, metals and rubber products became more expensive too.
Experts said the conflict in West Asia and problems affecting oil shipments could keep prices high.
They also warned that weak rainfall and a weaker currency might add pressure.
One forecast said inflation could cool later if energy and commodity prices stop rising.
India’s wholesale price inflation rose to 9.92% in August from 9.78% in July, the second-highest reading in the WPI series based on 2022-23.
Fuel and power inflation jumped to 22.93% from 20.05%, driven by higher prices for mineral oils, LPG, petrol, diesel, crude petroleum and natural gas.
Food inflation increased to 7.05% from 6.65%, while primary-articles inflation declined to 7.76% from 8.52%.
Manufactured-products inflation reached a series high of 8.37%, with chemicals, rubber and plastics, metals, electrical equipment and motor vehicles among the cited contributors.
Economists warned that the West Asia conflict, energy prices, weaker currency and deficient rain could keep inflation elevated, although one forecast expects cooling after September-October.
- Who
- India’s Ministry of Commerce and Industry released the data; economists, businesses, consumers and policymakers are affected by the price pressures.
- What
- Wholesale price inflation rose to 9.92% in August from 9.78% in July.
- When
- The data was released on September 14, 2026, covering August 2026.
- Where
- India, amid global energy and commodity pressures linked to the West Asia conflict and the Strait of Hormuz.
- Why
- Higher prices for fuel and power, food, manufactured goods, mineral oils, chemicals, metals and other commodities drove the increase.
Persistent Inflation Risks
Potential Cooling Later
Near-term outlook
Persistent Inflation Risks
Barclays said renewed global energy-price increases could keep WPI and producer-price inflation under pressure. India Ratings and Research expects wholesale inflation to reach 10.2% in September and remain elevated through the rest of 2026 unless the West Asia crisis is resolved.
Potential Cooling Later
Icra expects WPI inflation to exceed 9.5%-10% in September-October before cooling, helped by a favourable statistical base if global energy and commodity prices do not rise further.
Main sources of pressure
Persistent Inflation Risks
Analysts cited the unresolved West Asia conflict, higher energy prices, deficient rain, a weaker currency and possible further increases in food prices such as sugar.
Potential Cooling Later
The reported forecasts allow for moderation if global energy and commodity prices stabilize and a favourable base effect takes hold.
- August WPI inflation
- 9.92%, up from 9.78% in July
- WPI series ranking
- Second-highest reading in the series using 2022-23 as the base year
- Fuel and power inflation
- 22.93%, up from 20.05% in July
- Food inflation
- 7.05%, up from 6.65% in July
- Manufactured-products inflation
- 8.37%, a series high, up from 8.29% in July
- Primary-articles inflation
- 7.76%, down from 8.52% in July
- Producer-price inflation
- 9.81% in August; reports cited July figures of 9.6% and 9.57%
- RBI policy rate
- 5.25% at the previous meeting
Sources
August WPI inflation hits 9.92%: West Asia conflict, fuel prices drive wholesale inflation
WPI inflation rises to 9.92% in Aug on rising prices of food, fuel, manufactured items
WPI inflation rises to 9.92% in Aug on costlier food, fuel, manufactured items
WPI inflation rises to 9.92% in August on higher fuel prices
