India's WPI inflation rises to 9.92% in August, fuel prices key driver
Synopsis
India's wholesale inflation accelerated to 9.92% in August 2026, with Fuel and Power prices surging past 22% — the sharpest pressure point in the latest WPI print. With June's final estimate also revised upward to 9.97%, the trend signals that energy-led cost pressures are entrenching themselves across the supply chain, raising questions about downstream retail price impact.
Key Takeaways
WPI inflation rose to 9.92% in August 2026 , up from 9.78% in July, per Commerce Ministry data.
Fuel and Power inflation surged to 22.93% in August, the steepest among major groups, from 20.05% in July.
WPI Food Index inflation quickened to 7.05% in August from 6.65% in July.
Primary Articles inflation eased to 7.76% , while Manufactured Products edged up to 8.37% .
June WPI inflation was revised upward to 9.97% from the provisional estimate of 9.87% .
The Input PPI for Manufacturing for August stood at 104.2 (provisional), with June's figure revised down to 105.9 .
India's Wholesale Price Index (WPI) inflation climbed to 9.92% in August 2026, up from 9.78% in July, according to data released by the Commerce Ministry on Monday, 14 September 2026. The uptick was driven largely by a sharp surge in Fuel and Power prices, alongside sustained pressure on food and manufactured goods.
Key Inflation Figures for August
The All Commodities index for August stood at 110.8, rising from 110.0 in July 2026. Among the major sub-groups, Fuel and Power recorded the steepest inflation at 22.93%, up sharply from 20.05% in July. Primary Articles eased slightly to 7.76% from 8.52%, while Manufactured Products edged up to 8.37% from 8.29% in the previous month.
The corresponding indices for these groups in August were 118.1 (Primary Articles), 108.3 (Fuel and Power), and 108.8 (Manufactured Products), compared to 117.2, 105.4, and 108.4 respectively in July.
Food Prices and Primary Drivers
The WPI Food Index recorded a year-on-year inflation of 7.05% in August, accelerating from 6.65% in July. The Commerce Ministry identified Mineral Oils (including Petroleum Products), Food Articles, Manufacture of Food Products, Manufacture of Basic Metals, Non-Food Articles, and Manufacture of Chemicals and Chemical Products as the primary contributors to elevated wholesale inflation last month.
This comes amid persistent global commodity pressures and domestic energy price trends that continue to filter through the supply chain. Notably, Fuel and Power inflation crossing the 22% mark signals that energy-linked cost pressures are intensifying, with potential downstream effects on manufacturing input costs and consumer prices.
June Final Estimate Revised Upward
The government also revised the final index for June 2026 upward from the provisional estimate of 110.2 to 110.3. As a result, June WPI inflation has been revised from 9.87% (provisional) to 9.97% (final estimate). The final estimate was compiled with a weighted response rate of 99.3%, while the provisional August estimate carries a weighted response rate of 84.4%.
Producer Price Indices
In related data, the final index for Output Producer Price Index (PPI) for June was revised from 109.9 (provisional) to 110.0. The trial Input PPI for the Manufacturing Sector for August stood at 104.2 (provisional), while the June Input PPI was revised significantly downward from 107.1 (provisional) to 105.9 (final), pointing to a meaningful correction in manufacturing input costs for that month.
With WPI inflation now trending above 9.9% and energy prices showing no immediate signs of cooling, policymakers and industry will be watching the next Consumer Price Index (CPI) print closely to assess how wholesale-level pressures are transmitting into retail inflation.
Point of View
Meaning the worst of this cycle may not yet be visible in CPI. More concerning is the pattern of upward revisions: June's final WPI was revised to 9.97%, suggesting the provisional prints have been consistently understating actual inflation. If that trend continues with August's 84.4% response rate estimate, the real number could edge closer to 10% — a threshold with real policy implications for the Reserve Bank of India.
NationPress
14 Sept 2026
Frequently Asked Questions
What is India's WPI inflation for August 2026?
India's Wholesale Price Index (WPI) inflation for August 2026 stood at 9.92%, up from 9.78% in July 2026, according to data released by the Commerce Ministry on 14 September 2026. The rise was driven primarily by a sharp increase in Fuel and Power prices.
Which sector drove WPI inflation highest in August 2026?
Fuel and Power recorded the highest inflation among major WPI groups at 22.93% in August 2026, a significant jump from 20.05% in July. Mineral Oils, including Petroleum Products, were identified as a major driver of this surge.
What happened to India's WPI food inflation in August?
The WPI Food Index recorded a year-on-year inflation of 7.05% in August 2026, accelerating from 6.65% in July. Food Articles and Manufacture of Food Products were cited among the key contributors to the overall WPI increase.
Was India's June WPI inflation revised?
Yes, the final WPI inflation figure for June 2026 was revised upward to 9.97% from a provisional estimate of 9.87%. The final index for June was also revised from 110.2 to 110.3, based on a weighted response rate of 99.3%.
What do the latest WPI figures mean for retail inflation in India?
Elevated wholesale inflation — particularly in Fuel and Power at 22.93% — typically filters into retail consumer prices over subsequent months, raising the risk of sustained CPI pressure. Policymakers at the Reserve Bank of India will likely factor this trend into their assessment of the inflation trajectory.
