Wholesale Price Inflation Hits 9.87%: What’s Driving the Surge?

Wholesale Price Inflation Overview

New Delhi: In June, wholesale price inflation surged to 9.87%, an increase from May's 9.68%, primarily driven by significant price hikes in both food and non-food sectors.

This notable increase in WPI inflation is attributed to the ongoing crisis in West Asia, the blockade of the Strait of Hormuz—which is crucial for India's crude oil imports—and its subsequent effects on food pricing.

According to the Ministry of Commerce and Industry, key contributors to the WPI inflation in June 2026 included mineral oils (including petroleum products), food articles, basic metals manufacturing, and chemicals.

The base year for the WPI calculation is set at 2022-23.

In June, wholesale inflation for fuel and power was recorded at 27.41%, down from 30.33% in May, as per the latest data from the Commerce and Industry Ministry.

Food articles saw inflation rise to 5.49% in June, compared to 3.60% in May. Non-food articles experienced WPI inflation of 11.07%, while minerals recorded 9.45% inflation.

Inflation for manufactured goods remained steady at 7.48%, consistent with May's figures.

Additionally, retail inflation, measured by the consumer price index, reached a 17-month peak of 4.38% in June, up from 3.93% the previous month.

The Reserve Bank of India (RBI), which primarily considers CPI for its monetary policy decisions, has been tasked by the government to maintain a headline inflation target of 4%, allowing for a 2% variance.

Recently, the RBI adjusted its inflation forecast for the current fiscal year to 5.1%, up from 4.6%, largely due to rising input costs linked to increased global energy prices affecting retail fuel prices.