India WPI inflation eases to 9.78% in July 2026, fuel prices cool
Synopsis
India's wholesale inflation dipped fractionally in July 2026, but the headline number masks a sharper story: Fuel and Power inflation nearly halved from 27.41% to 20.05%, yet food prices at the wholesale level accelerated, and May's inflation was revised upward to 9.88% — higher than July's provisional reading.
Key Takeaways
WPI inflation stood at 9.78 per cent in July 2026 , down from 9.87 per cent in June 2026.
Fuel and Power inflation cooled sharply to 20.05 per cent from 27.41 per cent in June, driving the headline decline.
Primary Articles inflation rose to 8.52 per cent and Manufactured Products to 8.29 per cent in July.
WPI Food Index inflation accelerated to 6.65 per cent in July from 6.14 per cent in June.
May 2026 WPI inflation was revised upward to 9.88 per cent from the provisional estimate of 9.68 per cent .
Trial Input PPI for Manufacturing for May 2026 was revised from 104.9 to 106.5 , signalling higher input cost pressures.
India's Wholesale Price Index (WPI) inflation edged down to 9.78 per cent year-on-year in July 2026, marginally lower than the 9.87 per cent recorded in June 2026, according to provisional data released by the Ministry of Commerce and Industry on Friday, 14 August 2026. The base year for the index is 2022-23. The all-commodities index stood at 110.0 in July, down slightly from 110.2 in June.
Category-wise Inflation Breakdown
Inflation across the three major WPI categories showed mixed movement in July. Primary Articles inflation rose to 8.52 per cent from 7.0 per cent in June, while Fuel and Power inflation cooled sharply to 20.05 per cent from 27.41 per cent in the previous month. Manufactured Products inflation also ticked up to 8.29 per cent from 7.48 per cent in June.
The corresponding indices for Primary Articles, Fuel and Power, and Manufactured Products stood at 117.2, 105.4, and 108.4 respectively in July 2026, compared to 116.1, 111.1, and 107.8 in June 2026.
Key Drivers of WPI Inflation in July
According to the government data, the primary contributors to WPI inflation in July were Mineral Oils (including Petroleum Products), Food Articles, Manufacture of Basic Metals, Non-Food Articles, Manufacture of Food Products, and Manufacture of Chemicals and Chemical Products. The WPI Food Index recorded a year-on-year inflation of 6.65 per cent in July 2026, up from 6.14 per cent in June 2026, indicating continued pressure on food prices at the wholesale level.
May 2026 Data Revised Upward
The final index for May 2026 has been revised upward from the provisional estimate of 109.9 to 110.1. Consequently, WPI inflation for May has been revised from 9.68 per cent (provisional) to 9.88 per cent (final), compiled with a weighted response rate of 98.14 per cent. The final Output Producer Price Index (PPI) for May 2026 was also revised from 109.6 to 109.9.
Producer Price Index Update
The All India Trial Input Producer Price Index (PPI) for the Manufacturing Sector stood at 105.9 (provisional estimate) for July 2026. The Trial Input PPI for May 2026 was revised from 104.9 (provisional) to 106.5 (final), suggesting input cost pressures in the manufacturing sector were higher than initially estimated. The easing of headline WPI, driven largely by the steep correction in Fuel and Power inflation, offers some relief, though the uptick in food and manufactured goods inflation warrants continued monitoring.
Point of View
Masking acceleration in both food and manufactured goods prices. More telling is the upward revision to May's inflation figure, which now stands at 9.88%, higher than July's provisional reading. With food wholesale inflation ticking up and input PPI for manufacturing also revised sharply higher for May, the easing narrative deserves scrutiny before being read as a trend reversal.
NationPress
14 Aug 2026
Frequently Asked Questions
What is India's WPI inflation for July 2026?
India's Wholesale Price Index (WPI) inflation stood at 9.78 per cent year-on-year in July 2026, marginally lower than 9.87 per cent in June 2026, according to provisional data released by the Ministry of Commerce and Industry on 14 August 2026.
Why did WPI inflation ease in July 2026?
The primary driver of the decline was a sharp cooling in Fuel and Power inflation, which fell to 20.05 per cent in July from 27.41 per cent in June. However, Primary Articles and Manufactured Products inflation both rose during the same period.
What happened to food inflation in the WPI data for July 2026?
The WPI Food Index recorded a year-on-year inflation of 6.65 per cent in July 2026, up from 6.14 per cent in June 2026, indicating that food prices at the wholesale level continued to rise faster month-on-month.
Was the May 2026 WPI data revised?
Yes. The final WPI index for May 2026 was revised from 109.9 (provisional) to 110.1, and inflation for May was revised upward from 9.68 per cent to 9.88 per cent, based on a weighted response rate of 98.14 per cent.
What are the major drivers of WPI inflation in July 2026?
According to the government data, the key contributors were Mineral Oils (including Petroleum Products), Food Articles, Manufacture of Basic Metals, Non-Food Articles, Manufacture of Food Products, and Manufacture of Chemicals and Chemical Products.
