India’s Wholesale Inflation Rises to 9.92 pc in August on Higher Food, Fuel Prices

India’s wholesale price-based inflation rose to 9.92% in August 2026, up from 9.78% in July, driven by higher prices of food, manufactured products, and fuel and power, according to government data released on Monday.

The rise in wholesale inflation came as price pressures strengthened across several major commodity groups, with food, petroleum products, manufactured food items, basic metals, non-food articles, and chemicals emerging as key contributors.

Food inflation rises

Inflation in the WPI Food Index increased to 7.05% in August, compared with 6.65% in July. The Food Index, which carries a weight of 24.99% in the Wholesale Price Index, includes food articles under Primary Articles and manufactured food products.

Inflation in Primary Articles stood at 7.76% in August, compared with 8.52% in July. Despite the moderation in this broad category, higher food prices contributed significantly to the overall increase in wholesale inflation.

Manufacturing inflation hits series high

Inflation in Manufactured Products accelerated to 8.37% in August, from 8.29% in July. According to the government data, this was the highest inflation recorded in the series under the current WPI base year of 2022-23.

Manufactured food products, basic metals and chemicals were among the major groups contributing to price pressures during the month.

Fuel and power inflation jumps

The sharpest increase was recorded in the Fuel and Power group, where inflation climbed to 22.93% in August, from 20.05% in July.

Within the group, prices of petroleum and natural gas rose 34.41% year-on-year, accelerating from a 26.99% increase in July. Mineral oils, including petroleum products, were identified among the major drivers of overall WPI inflation.

The overall Wholesale Price Index for all commodities increased to 110.8 in August, from 110.0 in July.

Congress attacks government over price rise

The latest WPI figures also drew a political response from the Congress. The opposition party took a swipe at the government, saying Prime Minister Narendra Modi often says “sab changa si”, but the latest inflation figures show that “sab mehenga si”.

The August data indicate that wholesale price pressures remain elevated, particularly in fuel and manufactured products, even as inflation in primary articles moderated from the previous month.

RBI Watch

This wholesale inflation data comes at a time when the Reserve Bank is closely monitoring inflation and interest rate trends. Last month, the Monetary Policy Committee (MPC) kept the benchmark policy rate unchanged at 5.25%. With wholesale inflation rising to 10% and retail inflation nearing 5%, the likelihood of an interest rate hike has increased.