Another inflation warning? Wholesale prices jump more than expected in June
The reading topped forecasts even as fuel and power inflation eased under the revised WPI series.
- Jul 14, 2026,
- Updated Jul 14, 2026 2:46 PM IST
India’s wholesale inflation gathered pace again in June, with price pressures firming across food and several key industrial categories. Official data released by the commerce and industry ministry on Tuesday showed wholesale inflation quickened to 9.87% in June from 9.68% in May, coming in above economists’ expectations of a 9.15% year-on-year rise.
The June print was also above a Reuters poll of economists, which had projected a 9.15% year-on-year increase. The ministry said the rise was driven primarily by higher prices of food articles, mineral oils containing petroleum products, manufacture of basic metals, and manufacture of chemicals and chemical products.
The WPI Food Index rose to 6.14% in June from 4.49% in May, reflecting a broad-based increase in food prices. Inflation in primary articles accelerated to 7% from 4.99% a month earlier. Within this category, prices of food articles increased 3.75% month on month, while non-food articles rose 1.43% and minerals climbed 0.58%. Crude petroleum and natural gas prices, however, declined 0.08% over the previous month.
Inflation in the fuel and power group eased to 27.41% in June from 30.33% in May. Every month, the index for the category declined 1.68%, led by lower prices of mineral oils, while electricity prices remained unchanged. Inflation in manufactured products, which account for nearly two-thirds of the WPI basket, remained unchanged at 7.48%.
Within manufactured products, prices of 22 out of 24 manufacturing groups increased every month. The biggest gains were recorded in manufacture of basic metals, chemicals and chemical products, food products, machinery and equipment, and other manufacturing.
Prices of pharmaceuticals, medicinal chemical and botanical products, and fabricated metal products declined. The All Commodities WPI index increased to 110.2 in June from 109.9 in May. The Primary Articles index rose to 116.1 from 113.7, while the Fuel and Power index declined to 111.1 from 113.0. The Manufactured Products index remained unchanged at 107.8.
The June data is based on the revised Wholesale Price Index series with 2022-23 as the base year, introduced by the government last month to better reflect the current structure of the economy. The revised series expands the commodity basket to 957 items from 697 under the previous 2011-12 base year and includes newer products across sectors, including renewable energy sources such as solar and wind electricity, while also adding nuclear electricity to the basket.
The government also revised the final WPI inflation estimate for April 2026 to 8.36% from the provisional estimate of 8.26%, after revising the WPI index to 108.9 from 108.8. The provisional estimate for June was compiled with a weighted response rate of 82.6%, while the final estimate for April was based on a 97.5% weighted response rate. Overall, the June data showed wholesale inflation rising faster than expected, led by food and selected manufactured items, even as inflation in fuel and power moderated.
FAQs
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What was India’s wholesale inflation rate in June, and how did it compare with May?
India’s wholesale inflation, measured by the WPI, rose to 9.87% in June from 9.68% in May. This was higher than market expectations, showing that price pressures strengthened further during the month.
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What were the main reasons behind the rise in wholesale inflation in June?
The increase was mainly driven by higher prices of food articles, petroleum-based mineral oils, basic metals, and chemicals and chemical products. Food inflation strengthened notably, adding to the overall rise in wholesale prices.
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How did food inflation perform in June under the WPI data?
The WPI Food Index climbed to 6.14% in June from 4.49% in May. This reflected a broad-based rise in food prices, with food articles within primary articles recording a sharp month-on-month increase.
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Did fuel and power inflation ease in June?
Yes, inflation in the fuel and power group eased to 27.41% in June from 30.33% in May. The category index fell month on month, mainly due to lower mineral oil prices, while electricity prices stayed unchanged.
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What is significant about the revised WPI series introduced by the government?
The government has shifted to a revised WPI series with 2022-23 as the base year to better reflect the current economy. The new basket has 957 items instead of 697 and includes newer sectors such as solar, wind, and nuclear electricity.
India’s wholesale inflation gathered pace again in June, with price pressures firming across food and several key industrial categories. Official data released by the commerce and industry ministry on Tuesday showed wholesale inflation quickened to 9.87% in June from 9.68% in May, coming in above economists’ expectations of a 9.15% year-on-year rise.
The June print was also above a Reuters poll of economists, which had projected a 9.15% year-on-year increase. The ministry said the rise was driven primarily by higher prices of food articles, mineral oils containing petroleum products, manufacture of basic metals, and manufacture of chemicals and chemical products.
The WPI Food Index rose to 6.14% in June from 4.49% in May, reflecting a broad-based increase in food prices. Inflation in primary articles accelerated to 7% from 4.99% a month earlier. Within this category, prices of food articles increased 3.75% month on month, while non-food articles rose 1.43% and minerals climbed 0.58%. Crude petroleum and natural gas prices, however, declined 0.08% over the previous month.
Inflation in the fuel and power group eased to 27.41% in June from 30.33% in May. Every month, the index for the category declined 1.68%, led by lower prices of mineral oils, while electricity prices remained unchanged. Inflation in manufactured products, which account for nearly two-thirds of the WPI basket, remained unchanged at 7.48%.
Within manufactured products, prices of 22 out of 24 manufacturing groups increased every month. The biggest gains were recorded in manufacture of basic metals, chemicals and chemical products, food products, machinery and equipment, and other manufacturing.
Prices of pharmaceuticals, medicinal chemical and botanical products, and fabricated metal products declined. The All Commodities WPI index increased to 110.2 in June from 109.9 in May. The Primary Articles index rose to 116.1 from 113.7, while the Fuel and Power index declined to 111.1 from 113.0. The Manufactured Products index remained unchanged at 107.8.
The June data is based on the revised Wholesale Price Index series with 2022-23 as the base year, introduced by the government last month to better reflect the current structure of the economy. The revised series expands the commodity basket to 957 items from 697 under the previous 2011-12 base year and includes newer products across sectors, including renewable energy sources such as solar and wind electricity, while also adding nuclear electricity to the basket.
The government also revised the final WPI inflation estimate for April 2026 to 8.36% from the provisional estimate of 8.26%, after revising the WPI index to 108.9 from 108.8. The provisional estimate for June was compiled with a weighted response rate of 82.6%, while the final estimate for April was based on a 97.5% weighted response rate. Overall, the June data showed wholesale inflation rising faster than expected, led by food and selected manufactured items, even as inflation in fuel and power moderated.