Wholesale Price Inflation Hits 9.92%: What’s Driving the Surge?

Wholesale price inflation in India has reached 9.92% in August, marking an increase from July's 9.78%. This rise is attributed to escalating prices in food, manufactured goods, and energy. The Ministry of Commerce and Industry highlights that mineral oils and food items are significant contributors to this inflation. The ongoing geopolitical tensions in West Asia and the blockade of the Strait of Hormuz have further exacerbated the situation, impacting crude oil and fertilizer costs. The Reserve Bank has maintained its policy rate at 5.25% while projecting retail inflation at 5% for the upcoming fiscal year. Read on to explore the implications of these economic trends.

By Narendra Chaudhary Sep 14, 2026, 12:38 IST

Wholesale Price Index Sees Significant Increase

New Delhi: The wholesale price-based inflation rate climbed to 9.92% in August, up from 9.78% in July, driven by increasing costs in food, manufactured goods, and energy, according to data released by the government on Monday.

Food inflation rose to 7.05% in August, compared to 6.65% the previous month.

For manufactured goods, the WPI inflation reached a record high of 8.37%, surpassing July's figure of 8.29%.

In the fuel and power sector, inflation based on the wholesale price index stood at 22.93%.

The Ministry of Commerce and Industry noted that key contributors to the WPI inflation in August 2026 included mineral oils (including petroleum products), food items, food product manufacturing, basic metals, non-food items, and the production of chemicals and chemical products.

The WPI has been on the rise since the start of the fiscal year, influenced by the ongoing conflict in West Asia and the subsequent 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 costs.

Last month, the Reserve Bank's monetary policy committee decided to maintain the benchmark policy rate at 5.25% and projected retail inflation at 5% for FY27, citing the impact of an uneven South-West monsoon amid El Niño conditions.