India's wholesale price inflation accelerated to 11.39% year-on-year in September 2026, up from 9.92% in August, as sharp increases in fuel, manufactured products and primary articles kept price pressures at the wholesale level firmly elevated.
Provisional government data released on Wednesday showed the Wholesale Price Index-based inflation rate rising for the fifth consecutive month, reaching its highest level in the current six-month period. The all-commodities WPI index climbed to 112.5 in September from 110.8 in August, indicating a broad-based rise in wholesale prices.
Fuel and food lead the surge
The fuel and power category was the biggest driver, with inflation climbing to 25.85% in September from 22.93% in August. Within the category, mineral oils inflation rose to 40.02%, crude petroleum and natural gas surged to 57.32% from 34.41%, and coal and lignite jumped to 9.31% from 1.57%. Electricity prices remained in deflation, though the decline narrowed to minus 0.43% from minus 1.73%.
Food prices also quickened: inflation in the food index rose to 8.66% in September from 7.05% in August. The commerce and industry ministry said mineral oils, food articles, crude petroleum and natural gas, coal and lignite, basic metals, chemicals, textiles, rubber and plastic products, and electrical equipment were among the main drivers of the September reading.
Policy backdrop
The WPI has been climbing since the start of the fiscal year, a trajectory the ministry links to the West Asia war and the resulting blockade of the Strait of Hormuz — through which the bulk of India's crude imports flow — pushing up global crude and fertiliser costs with spillover effects on food and commodity prices.
The print lands just after the Reserve Bank of India's monetary policy committee raised the benchmark policy rate by 25 basis points to 5.50% last week, and alongside retail inflation hitting a 23-month high of 5.54% in September, driven by food prices. With both wholesale and retail gauges running hot, the pressure on policymakers heading into the festive season is unmistakable.
Sources: WPI Inflation Rises To 11.39% In September From 9.92% In August — News18
Provisional government data released on Wednesday showed the Wholesale Price Index-based inflation rate rising for the fifth consecutive month, reaching its highest level in the current six-month period. The all-commodities WPI index climbed to 112.5 in September from 110.8 in August, indicating a broad-based rise in wholesale prices.
Fuel and food lead the surge
The fuel and power category was the biggest driver, with inflation climbing to 25.85% in September from 22.93% in August. Within the category, mineral oils inflation rose to 40.02%, crude petroleum and natural gas surged to 57.32% from 34.41%, and coal and lignite jumped to 9.31% from 1.57%. Electricity prices remained in deflation, though the decline narrowed to minus 0.43% from minus 1.73%.
Food prices also quickened: inflation in the food index rose to 8.66% in September from 7.05% in August. The commerce and industry ministry said mineral oils, food articles, crude petroleum and natural gas, coal and lignite, basic metals, chemicals, textiles, rubber and plastic products, and electrical equipment were among the main drivers of the September reading.
Policy backdrop
The WPI has been climbing since the start of the fiscal year, a trajectory the ministry links to the West Asia war and the resulting blockade of the Strait of Hormuz — through which the bulk of India's crude imports flow — pushing up global crude and fertiliser costs with spillover effects on food and commodity prices.
The print lands just after the Reserve Bank of India's monetary policy committee raised the benchmark policy rate by 25 basis points to 5.50% last week, and alongside retail inflation hitting a 23-month high of 5.54% in September, driven by food prices. With both wholesale and retail gauges running hot, the pressure on policymakers heading into the festive season is unmistakable.
Sources: WPI Inflation Rises To 11.39% In September From 9.92% In August — News18
