India WPI Hits Nearly Four-Year High as Food Prices See Sharpest Rise in 16 Months

India's wholesale inflation has surged to its highest level in nearly four years. The Wholesale Price Index (WPI) based inflation stood at 9.87% in June 2026, up from 9.68% in May 2026 and (-)0.4% in June 2025. This is the highest WPI inflation reading since September 2022, when it had touched 10.7%.

Food articles, which account for 24.99% of the Wholesale Price Index basket, also recorded a sharp increase. Wholesale food inflation rose to 6.14% in June, the highest since February 2025 (6.17%). Food inflation has been rising continuously since February 2026. Prior to that, during the eight-month period from June 2025 to January 2026, wholesale food inflation remained in negative territory for six months.

Food products under the WPI are classified into two categories - primary food articles and manufactured food products. Prices of primary food articles increased by 5.49% in June, compared with 3.6% in May. Manufactured food products recorded inflation of 7.2%, while beverages registered 1.44% inflation, compared with 6.14% and 1.64%, respectively, in May.

Among other major categories, fuel and power prices rose 27.41% in June. Within this segment, crude petroleum and natural gas prices jumped 34.75%. Inflation was also significant in textiles (10.85%), chemicals (12.78%), basic metals (12.31%), and electrical equipment (11.03%).

According to data released by the Ministry of Commerce and Industry, wholesale inflation averaged 9.37% during the April-June quarter of 2026-27, compared with 0% in the corresponding period last year and 1.72% in April-June 2024.

The Food Index increased 4.67% during the quarter, driven by a 3.87% rise in primary food articles and a 5.95% increase in manufactured food products. Beverage prices also increased by 1.16% during the quarter.