India's Wholesale Inflation Hits 11.39%: What You Need to Know

In September, India's wholesale price-based inflation surged to 11.39%, up from 9.92% in August, driven by increasing costs in food, manufactured goods, and energy. The food index inflation rose to 8.66%, while manufactured goods reached a record high of 9.76%. The Reserve Bank of India recently raised the benchmark policy rate to 5.50%. Retail inflation also hit a 23-month high of 5.54%, primarily due to rising food prices. This article explores the factors contributing to these inflationary trends and their implications for the economy.

By Narendra Chaudhary Oct 14, 2026, 12:25 IST

Wholesale Price Inflation Surges in September

New Delhi: According to recent government statistics, India's wholesale price-based inflation climbed to 11.39% in September, up from 9.92% in August. This increase is attributed to rising costs in food, manufactured goods, and energy.

The food index saw inflation rise to 8.66% in September, compared to 7.05% the previous month.

For manufactured goods, the WPI inflation reached a record high of 9.76%, surpassing August's figure of 8.37%.

In the fuel and power sector, inflation based on the Wholesale Price Index (WPI) was recorded at 25.85% in September, an increase from 22.93% in August.

Key contributors to the WPI inflation in September included mineral oils (including petroleum products), food items, crude oil and natural gas, coal and lignite, as well as the manufacturing of basic metals, chemicals, textiles, rubber, plastic products, and electrical equipment, as reported by the Ministry of Commerce and Industry.

The WPI has been on the rise since the start of the fiscal year, influenced by the ongoing conflict in West Asia and the resulting blockade of the Strait of Hormuz, which is crucial for India's crude oil imports. This situation has led to increased global crude and fertilizer prices, affecting food and commodity costs.

Last week, the Reserve Bank of India's monetary policy committee raised the benchmark policy rate by 25 basis points to 5.50%.

Additionally, retail inflation data released earlier this week indicated a rise to a 23-month peak of 5.54% in September, up from 4.83% in August, primarily driven by soaring food prices.