Wholesale Inflation Surges to 9.92% in August 2026: Fuel and Power Drive Increase

In August 2026, the Wholesale Price Index climbed to 110.8, indicating a 9.92% rise in wholesale inflation, driven largely by fuel and power sectors. While primary article inflation eased, manufactured products saw slight upticks. The Producer Price Index and WPI Food Index also recorded increases, reflecting broader economic pressures.

In a significant economic development, the Wholesale Price Index (WPI) surged to 110.8 in August 2026, marking an annual inflation rate of 9.92%, according to the Ministry of Commerce & Industry's data. This represents a slight increase from July's 9.78%, highlighting persistent inflation trends.

The primary driver behind this inflation spike has been rising prices in the fuel and power sectors, where year-on-year inflation accelerated to 22.93% from July's 20.05%. Other sectors, such as primary articles, showed a slowdown in inflation to 7.76% from 8.52% in July, while manufactured products saw a modest increase to 8.37%.

Sector-specific analysis reveals that 'Mineral Oils', 'Food Articles', 'Manufacture of Food Products', and 'Manufacture of Basic Metals' were significant contributors to August's wholesale price movements. Additionally, the WPI Food Index witnessed a rise in inflation to 7.05% from 6.65% in July, indicating mounting pressure on food-related commodities.