India's wholesale price inflation accelerated sharply to 11.39% in September 2026, a notable increase from 9.92% recorded in August. Provisional data released by the Ministry of Commerce and Industry indicates that escalating prices in fuel, power, and food articles were the primary drivers behind this surge.
The Wholesale Price Index (WPI), which uses 2022-23 as its base year, rose to 112.5 in September from 110.8 in the preceding month. This broad-based increase saw all three major components of the index—primary articles, fuel and power, and manufactured products—report higher annual inflation during the month.
Fuel and Power Costs Climb
Inflation within the critical fuel and power sector saw a significant jump, rising to 25.85% in September from 22.93% in August. This category experienced substantial pressure from:
- Crude Petroleum and Natural Gas: Surged to 57.32% from 34.41%.
- Mineral Oils (including petroleum products): Increased to 40.02% from 38.48%.
- Coal and Lignite: Rose sharply to 9.31% from 1.57%.
Electricity prices, however, continued to decline, although the contraction narrowed slightly to 0.43% in September from 1.73% in August.
Intensifying Food Price Pressures
Food price inflation also intensified, with the WPI Food Index—which encompasses food articles and manufactured food products—increasing to 8.66% in September from 7.05% in August. Specifically:
- Inflation in food articles alone rose to 8.14% from 5.67%.
- Manufactured food products inflation eased marginally to 9.44% from 9.65%.
Overall inflation in primary articles, which includes food, climbed to 8.67% from 7.76%.
Manufactured Products See Higher Inflation
Manufactured products, holding the largest weight in the WPI basket, also experienced an acceleration in inflation, reaching 9.76% in September from 8.37% in August. Key sectors within this category contributing to the rise include:
- Basic Metals: Jumped to 16.96% from 10.88%.
- Chemicals and Chemical Products: Rose to 16.74% from 14.30%.
- Textiles: Increased to 13.85% from 12.63%.
- Rubber and Plastic Products: Climbed to 13.47% from 11.18%.
- Electrical Equipment: Rose to 11.93% from 11.11%.
Notably, computer, electronic, and optical products recorded positive inflation of 4%, reversing a contraction of 0.47% in August.
Cumulative Inflation and Input Costs
The cumulative WPI inflation for April-September 2026 stood at 9.85%, a significant reversal from a contraction of 0.20% during the corresponding period of the previous financial year. The government also reported an increase in the trial Input Producer Price Index for manufacturing, which rose to 106.1 in September from 104.2 in August, signaling higher input costs for manufacturers.