Wholesale Inflation Eases Marginally to 9.78% in July, But Food Index Goes UP

India’s wholesale price inflation (WPI) remained elevated at 9.78% in July 2026, with food articles and agricultural goods continuing to put pressure on wholesale prices. Inflation in primary articles accelerated to 8.52%, while the broader WPI Food Index rose to 6.65% in July from 6.14% in June, according to provisional government data.

The latest WPI data released by the Office of the Economic Adviser under the Department for Promotion of Industry and Internal Trade (DPIIT) showed that overall wholesale inflation eased marginally from 9.87% in June. The All Commodities WPI index declined to 110.0 in July from 110.2 in June.

Within primary articles, which carry a 22.76% weight in the WPI basket, food articles recorded inflation of 5.44% in July, compared with 5.49% in June. However, non-food articles saw a sharp acceleration, with inflation rising to 17.66% from 11.07% in June. Mineral inflation also increased to 13.28% from 9.45%.

The primary articles index rose to 117.2 in July from 116.1 in June. The food articles index increased to 118.2 from 117.3, while the non-food articles index climbed to 112.6 from 110.4.

The government identified mineral oils, food articles, manufacture of basic metals, non-food articles, manufacture of food products, and manufacture of chemicals and chemical products among the major drivers of WPI inflation in July.

Food inflation picks up

The WPI Food Index, which accounts for 24.99% of the overall basket and combines food articles from primary articles with manufactured food products, recorded inflation of 6.65% in July, up from 6.14% in June. Inflation in manufactured food products accelerated further to 8.89% in July from 7.20% in June. The index for manufacture of food products rose to 115.1 in July from 113.1 in June.

On a cumulative basis, the Food Index recorded 5.12% inflation during April-July of FY 2026-27, compared with a contraction of 0.45% during the corresponding period of FY 2025-26. The cumulative inflation rate for food articles stood at 4.31% during April-July 2026-27, while manufactured food products recorded inflation of 6.71% during the period.

Fuel inflation eases but remains high

Inflation in the Fuel and Power group declined significantly to 20.05% in July, from 27.41% in June. However, mineral oils continued to record high inflation at 32.40%, while crude petroleum and natural gas inflation stood at 26.99%. Electricity inflation turned positive at 1.09%, compared with -0.76% in June, while coal and lignite inflation remained negative at -0.56%.

Manufactured products inflation rises

Inflation in manufactured products increased to 8.29% in July from 7.48% in June. Several industrial segments recorded significant price pressures. Inflation in basic metals stood at 12.56%, chemicals and chemical products at 13.12%, electrical equipment at 12.34%, textiles at 12.80%, and rubber and plastic products at 10.38%.

Manufacture of tobacco products recorded inflation of 13.36%, while fabricated metal products registered 7.24%. Inflation in motor vehicles, trailers and semi-trailers remained relatively moderate at 1.80%.

Agricultural output prices also rise

The government has also released provisional Output Producer Price Index (Output PPI) data for July. The overall Output PPI for all commodities remained unchanged at 109.9 in July.

The Output PPI for Agriculture, Forestry and Fishing increased to 115.6 in July from 114.1 in June. Within this category, the index for crop and animal production, hunting and related service activities rose to 116.1 from 114.3. The forestry and logging index increased to 119.9 from 118.0, while the index for fishing and aquaculture declined to 103.7 from 106.6.

The cumulative Output PPI for Agriculture, Forestry and Fishing stood at 113.3 during April-July 2026, up from 107.2 in the corresponding period of FY 2025-26. Crop and animal production recorded a cumulative index of 113.5.

Overall wholesale inflation remains high

Despite a marginal month-on-month easing, wholesale inflation remains considerably higher than earlier in the year. WPI inflation had risen from 2.18% in February to 3.98% in March, 8.36% in April and 9.88% in May before easing slightly to 9.87% in June and 9.78% in July. The government also revised the final WPI inflation rate for May 2026 upward to 9.88%, from the earlier provisional estimate of 9.68%.

The July WPI figures are provisional and were compiled with a weighted response rate of 78.55%. The government will release the WPI data for August 2026 on September 14.