India’s wholesale price inflation rose to 9.92% year-on-year in August 2026, accelerating from 9.78% in July as fuel, petroleum and food prices came under stronger pressure, government data showed Monday.
The August reading was slightly higher than economists had expected. A Reuters poll had forecast wholesale inflation at 9.89%, putting the actual figure marginally above expectations.
Fast Facts
- August WPI inflation: 9.92%
- July WPI inflation: 9.78%
- Food inflation: 7.05%
- Fuel and power inflation: 22.93%
- Petroleum and natural gas inflation: 34.41%
- Manufactured products inflation: 8.37%
- Primary articles inflation: 7.76%
Fuel prices were the biggest pressure point
The sharpest increase came from the fuel and power category.
Prices in the sector rose 22.93% year-on-year in August, compared with 20.05% in July.
Within that category, petroleum and natural gas prices jumped 34.41% from a year earlier, accelerating significantly from the 26.99% increase recorded in July.
The stronger increase in energy-related prices was one of the major factors behind the acceleration in India’s overall wholesale inflation.
Higher energy and petroleum costs can also feed into production and transportation expenses because fuel is an important input for businesses across the economy.
Wholesale food inflation rises to 7.05%
Food prices also added to the inflationary pressure.
Wholesale food inflation increased to 7.05% in August, up from 6.65% in July.
The WPI Food Index covers both primary food products and manufactured food products and carries a combined weight of 24.99% in the index.
The August increase indicates that food-related wholesale price pressures strengthened even as some other components moved differently.
Manufactured product prices also increased
Inflation in manufactured products rose to 8.37% in August, compared with 8.29% a month earlier.
Several commodity groups contributed to the overall movement in wholesale prices, including mineral oils and petroleum products, food articles, manufactured food products, basic metals, non-food articles, and chemicals and chemical products.
The increase in manufactured-product inflation was smaller than the jump recorded in fuel and power prices, but it still contributed to the higher overall WPI reading.
Primary articles inflation eases
Not every component moved higher.
Inflation in primary articles declined to 7.76% in August, from 8.52% in July.
That decline provided some offset to the stronger increases in energy and food-related prices.
The mixed movement across categories highlights how the August WPI increase was driven particularly by energy and selected food and industrial inputs rather than by a uniform rise across every major component.
What the August WPI number means
The Wholesale Price Index tracks price movements at the wholesale level and is different from India’s consumer inflation measure.
A higher WPI reading can indicate rising costs for businesses and producers, particularly when increases are concentrated in energy, raw materials and other production inputs.
The August data show that wholesale price pressures remained elevated, with the 9.92% annual increase marking a further rise from July’s 9.78%.
The acceleration in fuel and petroleum prices is particularly important because energy costs can affect transportation, manufacturing and other business expenses.
Producer price data also show higher output prices
Alongside the WPI figures, the Ministry of Commerce and Industry released producer-price information.
The all-India Output Producer Price Index for all commodities, using a 2022-23 base year, stood at 110.8 in August, up from 109.9 in July.
Agriculture, forestry and fishing output prices increased to 116.5 from 115.6.
The mining and quarrying index rose to 122.0, compared with 119.4 in July.
Manufacturing output prices also increased, reaching 109.7 from 108.8.
Electricity was the exception among the highlighted sectors, with its output index falling to 90.9 from 92.4.
Manufacturing input prices remain an area to watch
Preliminary estimates for the manufacturing-sector Input Producer Price Index showed an August reading of 104.2.
The ministry also revised an earlier estimate for June. The final manufacturing input index for June was revised to 105.9, down from the provisional estimate of 107.1.
Input-price movements matter because changes in the cost of materials and other production inputs can eventually influence manufacturers’ pricing decisions.
Why the August increase matters
The latest figures show that India’s wholesale inflation is facing renewed pressure from energy and food costs.
The most notable movement was in petroleum and natural gas, where annual inflation accelerated to 34.41%. Fuel and power inflation also climbed above 22%.
At the same time, food inflation increased and manufactured-product inflation edged higher, while primary-article inflation declined.
The combination pushed overall wholesale inflation to 9.92% in August, above both July’s reading and the Reuters poll expectation.
For businesses, the direction of energy and input prices will remain important because sustained increases can raise production and logistics costs. The coming monthly data will show whether the August acceleration was temporary or the beginning of a broader period of stronger wholesale price pressure.
FAQs
What was India’s wholesale inflation in August 2026?
India’s wholesale price inflation rose 9.92% year-on-year in August 2026.
What was India’s WPI inflation in July 2026?
Wholesale inflation was 9.78% in July 2026.
Why did wholesale inflation rise in August?
Higher prices for fuel, petroleum products and food contributed significantly to the increase.
How much did fuel and power prices rise?
Fuel and power prices increased 22.93% year-on-year in August.
What happened to petroleum and natural gas prices?
Petroleum and natural gas prices rose 34.41% year-on-year in August, compared with 26.99% in July.
What was wholesale food inflation in August?
Wholesale food inflation increased to 7.05%, from 6.65% in July.
