Wholesale Inflation in India Approaches Double Digits Amid Rising Prices

In June 2026, India's wholesale inflation surged to 9.87%, driven by rising prices in food, mineral oils, and basic metals. This increase reflects ongoing economic pressures, with consumer inflation also on the rise. The latest data highlights significant trends in the manufacturing sector and the impact of fuel prices. As the economy grapples with these challenges, the implications for consumers and businesses are profound. Discover the details of this economic landscape and what it means for the future.

By Narendra Chaudhary Jul 14, 2026, 12:57 IST

Wholesale Inflation Trends in India

In June, India's wholesale inflation saw a notable increase, nearing the double-digit threshold due to escalating costs of food, mineral oils, basic metals, and chemicals. Government statistics released on Tuesday indicated that the wholesale price inflation, as gauged by the Wholesale Price Index (WPI), rose to 9.87% in June from 9.68% in May. The WPI for all commodities also increased to 110.2 in June, up from 109.9 the previous month.

The Ministry of Commerce and Industry reported that the WPI inflation rate for June 2026 was 9.87% year-on-year, highlighting ongoing cost pressures in various critical sectors. This data follows closely on the heels of retail inflation figures, which also showed upward price trends. Consumer inflation, measured by the Consumer Price Index (CPI), rose to 4.38% in June, up from 3.93% in May, while food inflation, as indicated by the Consumer Food Price Index (CFPI), increased to 5.32%, compared to 4.78% in the prior month.

Within the WPI framework, inflation for primary articles surged to 7.0% in June, a significant rise from 4.99% in May, with the index for primary articles climbing to 116.1 from 113.7. Food articles were a major factor in the wholesale price increase, with inflation in this category jumping to 5.49% in June from 3.6% in May. Non-food articles also experienced a notable rise, with inflation increasing to 11.07% from 9.49%.

Fuel Prices Show Slight Relief but Remain High

While inflation in the fuel and power sector showed some moderation compared to the previous month, it remained elevated. Fuel and power inflation was recorded at 27.41% in June, down from 30.33% in May. Mineral oils continued to see significant price hikes, although inflation in this segment eased to 46.48% from 49.82%. The inflation rate for crude petroleum and natural gas also decreased to 34.75%, compared to 61.51% the month before. Electricity prices, however, remained in deflation at -0.76%.

Mixed Trends in the Manufacturing Sector

Inflation for manufactured goods remained stable at 7.48%, with the index holding steady at 107.8 for both May and June. Within this sector, inflation for manufactured food products rose to 7.2% from 6.14%, while textile inflation increased to 10.85% from 10.22%. Basic metals continued to experience high inflation at 12.31%, while inflation for chemicals and chemical products slightly decreased to 12.78% from 13.4% in May.

The WPI Food Index, which includes both food articles and manufactured food products, recorded an inflation rate of 6.14% in June, up from 4.49% in May, with the index itself rising to 115.8 from 114.0. The ministry noted that mineral oils, food articles, basic metals manufacturing, and chemicals were the primary contributors to WPI inflation in June.

Additionally, the government revised the final WPI data for April 2026, adjusting the index to 108.9 from a provisional estimate of 108.8, which raised April's wholesale inflation to 8.36% from 8.26%. The provisional WPI estimate for June was compiled with a weighted response rate of 82.6%, while the final estimate for April was based on a higher response rate of 97.5%. The government also released provisional Output Producer Price Index (PPI) estimates, with the all-India Output PPI for all commodities at 109.9 in June, compared to 109.6 in May, and the trial Input PPI for the manufacturing sector recorded at 107.1.