India's wholesale price inflation rises to nearly 10% in August
What's the story
India's wholesale price inflation has seen a marginal rise, hitting 9.92% in August 2026 as compared to 9.78% in July. The increase is mainly due to higher prices of fuel, food, and manufactured goods. The Wholesale Price Index (WPI) rose from 110.0 in July to 110.8 last month, data released by the commerce ministry on September 14 showed.
Inflation drivers
Fuel and power costs drive inflation increase
The rise in wholesale price inflation was mainly driven by fuel and power costs, which surged to 22.93% from July's 20.05%.
Manufactured goods also saw a slight increase in their inflation rate, rising to 8.37% from July's 8.29%.
However, primary articles provided some relief as their inflation rate eased to 7.76%, down from July's 8.52%.
Price fluctuations
WPI food index inflation rises to 7.05%
The WPI Food Index inflation also rose to 7.05%, up from July's 6.65%.
Within the fuel category, mineral oil inflation skyrocketed to 38.48% from July's 32.40%.
Crude petroleum and natural gas prices also witnessed an increase in their respective inflation rates, rising to 34.41% from July's 26.99%.
Product inflation
Rising inflation rates among manufactured goods
Among manufactured goods, food-product inflation rose to 9.65% from July's 8.89%.
Chemicals also saw a rise in their respective inflation rates, climbing to 14.30% from July's 13.12%.
However, basic metals did provide some relief as their inflation rate eased to 10.88%, down from July's 12.56%.
Future projections
Consumer inflation expected to hit a 20-month high
Consumer inflation data is due later today and is expected to hit a 20-month high, driven by higher food and fuel prices.
This would be the third consecutive month of inflation above the Reserve Bank of India's (RBI) medium-term target of 4%.
Despite the rising inflation, RBI kept interest rates unchanged last month as it remained within its 2%-6% target band.
Monetary policy
RBI open to tightening policy if price pressures broaden
The RBI has indicated that it is open to tightening policy if price pressures broaden.
An erratic monsoon has disrupted food supplies, pushing up prices of essentials such as sugar, cereals, milk, edible oils, eggs, and meat.
Global crude prices nearing $110 a barrel and higher cooking gas costs have also contributed to inflationary pressures in India.