What happened
Government WPI data released on 14 Sep 2026 showed wholesale inflation rose to 9.92% in August from 9.78% in July, driven by food at 7.05%, manufactured items at a series high of 8.37% and fuel & power at 22.93%.
India's wholesale inflation climbed to 9.92% in August 2026, up from 9.78% in July, government data released on September 14 showed. It is the second-highest reading in the new WPI series with base 2022-23.
Three baskets drove the jump: food inflation rose to 7.05% from 6.65%, manufactured items hit a series high of 8.37% from 8.29%, and fuel and power surged to 22.93% from 20.05% — the steepest rise.
The Commerce Ministry said mineral oils, food articles, processed food, basic metals, non-food articles and chemicals were the major drivers. OPPI inflation also rose to 9.81% from 9.6%.
Analysts linked the trend to the West Asia war and Strait of Hormuz blockade pushing up global crude and fertiliser costs, spilling into food prices since FY 2026-27 began.
RBI held its policy rate at 5.25% in August and pegged FY27 CPI at 5% on weak monsoon risks. Barclays sees no moderation ahead, India Ratings says fuel will stay high until the crisis eases, ICRA expects 9.5-10% in Sep-Oct before a base-effect cool-off.
How WPI got here
Wholesale inflation has been climbing since FY 2026-27 began.
- Apr-Jun 2026 — WPI turns upward as West Asia war escalates and Hormuz blockade begins
- July 2026 — WPI at 9.78%; food 6.65%, manufactured 8.29%, fuel & power 20.05%
- 14 Sep 2026 — WPI for August released: 9.92% headline; food 7.05%, manufactured 8.37% (series high), fuel & power 22.93%
- Sep-Oct 2026 — ICRA expects 9.5-10% before base-effect cooling if energy prices hold
What is confirmed
Commerce Ministry WPI release (eaindustry.nic.in) confirms the August prints and the new 2022-23 base. RBI held rates at 5.25% in August. Analyst views from Barclays, ICRA and India Ratings are on record via PTI.
What to watch next
Watch September WPI (due mid-October), global crude and fertiliser prices, Hormuz shipping updates, and RBI's next MPC guidance. If crude spikes again, the cooling ICRA expects may not materialise.
Why it matters for me
With wholesale costs near 10% and factory inputs at a record high, retail prices are likely to stay elevated and businesses face margin pressure as fuel and raw material costs pass through.
Money · Daily Life
General Public
Wholesale costs at 9.92% with food at 7.05% and fuel at 22.93% will pass through to retail prices, stretching household budgets for groceries, transport and daily essentials.
Work · Money
Business Executives
Manufactured items at a series high of 8.37% and chemicals, metals and petroleum derivatives rising means higher input costs and margin pressure for factories and MSMEs.
Money
Policy Watchers · General Public
With WPI near 10% and CPI expected to follow, RBI is likely to keep policy rates at 5.25% longer, keeping loan EMIs elevated despite growth concerns.
What to remember
Wholesale inflation is back near double digits — fuel is the biggest fire.
WPI inflation hits 9.92% in August — food at 7.05%, manufactured at record 8.37%, fuel at 22.93% as Hormuz blockade fuels costs.
Verified sources (4)
WPI inflation rises to 9.92% in August on rising prices of food, fuel, manufactured items
↗WPI inflation rises to 9.92 pc in Aug on costlier food, fuel, manufactured items
↗WPI inflation rises to 9.92% in Aug on costlier food, fuel, manufactured items
↗WPI data portal — new series with base 2022-23 effective from June 2026
↗Claims and linked sources
13 claimsIndia's Wholesale Price Index (WPI)-based inflation rose to 9.92% in August 2026 from 9.78% in July, on higher prices of food, manufactured items, and fuel and power.
The August 2026 print of 9.92% is the second highest in the new WPI series with 2022-23 as the base year (effective from May 2026 release).
Food WPI inflation rose to 7.05% in August 2026 from 6.65% in July.
Manufactured items WPI inflation stood at a series high of 8.37% in August 2026, up from 8.29% in July.
WPI fuel and power basket inflation was 22.93% in August 2026 against 20.05% in July — the highest of any WPI group.
Output Producer Price Index (OPPI)-based inflation rose to 9.81% in August 2026 from 9.6% in July.
The Commerce and Industry Ministry listed mineral oils (petroleum products), food articles, manufacture of food products, manufacture of basic metals, non-food articles and manufacture of chemicals and chemical products as major drivers of WPI inflation in August 2026.
The WPI has been on an upward trajectory since the start of FY 2026-27 as the West Asia war and the resultant blockade of the Strait of Hormuz (major route for India's crude imports) pushed up global crude and fertiliser costs, spilling over into food prices.
The Reserve Bank's Monetary Policy Committee kept benchmark policy rates unchanged at 5.25% in August 2026 and projected CPI inflation at 5% for FY 2027, citing deficient and uneven South-West monsoon under El Nino conditions.
Barclays stated: 'The recent rebound in global energy prices amid the re-escalation in the Middle East will continue to exert upward pressure on WPI and OPPI. Resultantly, we no longer expect any meaningful moderation in the upcoming inflation prints.'
India Ratings & Research Chief Economist Devendra Pant said the prolonged West Asia crisis has reversed two months of declining trend in fuel and power inflation and is likely to remain elevated until the crisis is resolved.
ICRA's Principal Economist Rahul Agrawal expects WPI inflation to exceed 9.5-10% in September-October 2026 before cooling thereafter, aided by a favourable base, unless global energy and commodity prices rise further.
The rise in 'manufactured products' inflation mostly reflected increases in primary articles (manufacture of food products), derivatives of petroleum products (chemicals and rubber & plastics), and manufacture of motor vehicles.