India’s wholesale price inflation (WPI) increased to 9.92% in August 2026, up from 9.78% in July, as prices of food, fuel and manufactured items moved higher, government data showed on Monday. The print was slightly above the 9.89%median estimate in a Reuters poll, pointing to persistent cost pressures at the factory and wholesale gate.
Broad picture: Inflation near 10% for fourth straight month
The Wholesale Price Index (WPI) measures price changes of goods sold in bulk at the wholesale level. It covers three main groups: primary articles, fuel and power, and manufactured products.
August’s 9.92% year-on-year reading means wholesale prices were almost 10% higher than a year ago. WPI inflation has now stayed close to the 10% mark for four consecutive months, with June’s figure later revised up to 9.97%.
Group-wise break-up: Fuel leads, primary articles cool
The rise in headline WPI was driven mainly by fuel and power and manufactured products, even as inflation in primary articles eased.
- Primary articles: 7.76% in August, down from 8.52% in July.
- Fuel and power: 22.93% in August, up sharply from 20.05% in July.
- Manufactured products: 8.37% in August, higher than 8.29% in July and the highest in the series.
Within primary articles, prices of food articles rose 7.02%, while non-food articles increased 11.01% and mineralsjumped 29.71% on a year-on-year basis.
Fuel and power: Mineral oils and crude push inflation higher
The fuel and power group, which includes energy inputs used by industry, saw inflation accelerate to 22.93%. Key contributors were:
- Mineral oils: 38.48% inflation
- Crude petroleum and natural gas: 34.41% inflation
Higher global and domestic energy costs are feeding into wholesale prices of petrol, diesel, furnace oil and other petroleum products, which in turn raise production and transport costs across sectors.
Manufactured products: Series-high 8.37% inflation
Manufactured products carry the largest weight in WPI (over 63%). Inflation in this group rose to a series high of 8.37%in August.
Major sub-sectors driving this increase include:
- Manufactured food products: 9.65% (up from 8.89%)
- Chemicals and chemical products: 14.30% (up from 13.12%)
- Textiles, rubber & plastics, electrical equipment and basic metals: all in double digits
Only a few categories saw mild deflation; for example, computer, electronic and optical products fell 0.47% year-on-year.
Food at wholesale gate: WPI Food Index at 7.05%
The WPI Food Index, which tracks wholesale prices of food items, rose to 7.05% in August from 6.65% in July. This reflects higher wholesale prices of cereals, vegetables, oils and other food articles, which can eventually feed into retail food inflation.
What this means for the economy
Persistently high WPI inflation signals rising input costs for manufacturers and traders. If these costs are passed on to consumers, they can keep retail inflation (CPI) elevated and squeeze household budgets, especially on food and fuel.
For policymakers, the data adds to the challenge of balancing growth support with price stability. For businesses, it underscores the need to manage input costs, inventory and pricing in a high-cost environment.
