2 weeks ago
India's Wholesale Inflation Eases to 9.78% in July
Every month, India measures how prices change for goods sold by factories and wholesalers.
That is called wholesale price inflation.
In July 2026, wholesale prices went up by 9.78 per cent compared with the same month last year.
That is a tiny bit less than June, when the rise was 9.87 per cent, and it is the first monthly fall under the country's new measuring system.
Fuel and electricity prices stopped rising as fast as before.
But food and factory-made goods became more expensive.
One big reason prices are high is that a war far away blocked an important waterway for oil, making fuel and fertiliser cost more.
Uneven rain also made some food harder to grow.
Prices at shops rose to 4.45 per cent, which is still within the central bank's comfort range.
The central bank watches these numbers carefully to help keep prices stable.
India's WPI inflation eased to 9.78% in July 2026 from 9.87% in June, the first month-on-month decline under the new 2022-23 base year series.
Fuel and power inflation fell sharply to 20.05% from 27.41%, with mineral oils easing to 32.4% from 46.48%.
Inflation accelerated in primary articles (8.52%), manufactured products (8.29%) and the WPI Food Index (6.65%), while food articles eased slightly to 5.44%.
Retail inflation rose to a 19-month high of 4.45% in July, within the RBI's 2-6% tolerance band but above its 4% target for a second straight month.
The West Asia war and blockade of the Strait of Hormuz pushed up global crude and fertiliser costs, keeping April-July FY27 WPI inflation at 9.47%; May inflation was revised up to 9.88%.
- Who
- The Ministry of Commerce and Industry released the provisional Wholesale Price Index (WPI) data for July 2026.
- What
- India's wholesale price inflation eased to 9.78 per cent in July from 9.87 per cent in June, the first month-on-month decline under the new 2022-23 base year series.
- Where
- India; the data was released in New Delhi.
- When
- July 2026; the provisional data was released on Friday, August 14, 2026.
- Why
- A sharp moderation in fuel and power inflation drove the easing, while rising food, primary article and manufactured product inflation kept wholesale prices elevated; the West Asia war and the blockade of the Strait of Hormuz raised global crude and fertiliser costs, and deficient and uneven monsoon rainfall amid El Nino conditions affected food supplies.
Inflation Is Cooling
Inflationary Pressures Persist
Overall inflation trend
Inflation Is Cooling
The first month-on-month fall under the new base year series and a reading below the 9.95% forecast of Reuters-polled economists show price pressures are easing.
Inflationary Pressures Persist
At 9.78%, wholesale inflation remains very high, and June's 9.87% was the highest reading recorded under the new WPI series; the moderation was not broad-based.
Future inflation outlook
Inflation Is Cooling
Barclays says WPI inflation has peaked and gradual, modest disinflation should continue, in line with lower global commodity and crude oil prices since June.
Inflationary Pressures Persist
ICRA says prints are likely to remain elevated through much of the year with an average around 8.5% for FY27, and CareEdge raised its FY27 WPI forecast to 9% from 7% due to external and weather-related risks.
Food and manufacturing prices
Inflation Is Cooling
Food article inflation eased slightly to 5.44% from 5.49%, and the broader moderation was driven by fuel and power, contributing to softness in the headline number.
Inflationary Pressures Persist
The WPI Food Index, primary articles and manufactured products all accelerated, with manufactured products and core WPI (8.2%) hitting series highs, showing pressures have not disappeared.
Key facts
- WPI inflation (July 2026)
- 9.78% YoY (June: 9.87%)
- WPI all commodities index (July)
- 110.0 (June: 110.2)
- Fuel and power inflation
- 20.05% (June: 27.41%)
- Primary articles inflation
- 8.52% (June: 7.00%)
- Manufactured products inflation
- 8.29% (June: 7.48%)
- WPI Food Index inflation
- 6.65% (June: 6.14%)
- Retail (CPI) inflation (July)
- 4.45% (June: 4.38%)
- May 2026 WPI inflation (final)
- 9.88% (revised from 9.68%)
Quotes
Rahul Agrawal
ICRA Principal Economist
“"Looking ahead, we anticipate a larger easing in the WPI inflation to below 9.5 per cent in August, after peaking at 9.9 per cent each during May-June 2026. Nevertheless, prints are likely to remain elevated through much of the year, with an average WPI inflation forecast of around 8.5 per cent for FY27."”
telegraphindia.com
“"In our view, WPI inflation has peaked and gradual and modest disinflation from hereon should continue, in line with relatively lower global commodity prices in general and crude oil price in particular (since June)."”
telegraphindia.com
Commerce and Industry Ministry spokesperson
Representative of India’s Commerce and Industry Ministry
“"Across groups, mineral oils (containing petroleum products), food articles, manufacture of basic metals, non-food articles, manufacture of food products, and manufacture of chemicals and chemical products have been major drivers of WPI inflation in July 2026," the ministry said.”
financialexpress.com
livemint.com
thehansindia.com
rediff.com
telegraphindia.com
Aastha Gudwani and Amruta Ghare
Barclays economists
“In our view, WPI inflation has peaked and gradual and modest disinflation from hereon should continue, in line with relatively lower global commodity prices in general and crude oil price in particular (since June),”
financialexpress.com
Sources
India WPI Inflation Eases Marginally To 9.78% In July As Food Inflation Rises
July WPI inflation eases to 9.78%, fuel and power segment sees a sharp drop
WPI inflation eases marginally to 9.78 pc in July; food, fuel and power prices cool
India’s wholesale inflation eases to 9.78% in July from 9.87% in June
India’s Wholesale Price Index inflation stands at 9.78 pc for July
WPI inflation breaks rising streak, eases to 9.78%
India’s Wholesale Price Index inflation stands at 9.78 pc for July
Wholesale Price Inflation Eases to 9.78% in July, Driven by Fuel and Food Price Moderation
India's wholesale inflation falls to 9.78% in July after nine months, aided by softer fuel prices
WPI inflation eases to 9.78% in July on lower fuel prices
Related news
India's Wholesale Inflation Eases Slightly as Food Prices Rise
WPI inflation eases in July on softer global energy prices
Retail Inflation Rises to 4.45% in July on Food Prices
India Retail Inflation Rises to 4.45% on Food Prices
India's retail inflation hits 19-month high of 4.45%
India's Retail Inflation at 4.45% in July, Above RBI Midpoint
Trump Floats Renaming Strait of Hormuz as ‘Trump Strait’
Chevron Plans $7 Billion Venezuela Expansion Amid U.S. Oil Push
Saudi Arabia Says Iranian Tanker Attack Killed Two Sailors
U.S.-Iran Exchange Escalates Across Middle East, Markets Slide
Trump Aides Seek Quiet Iran War Before Midterm Elections
