WPI Inflation Slips To 9.78% In July As Fuel And Food Price Pressures Ease

Wholesale price inflation in India eased slightly in July, helped by a moderation in fuel, power and food prices. WPI inflation stood at 9.78% during the month, compared with 9.87% in June, according to data released by the Commerce and Industry Ministry on Friday.

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Fuel And Food Prices Ease

The July reading marks the first month-on-month decline in wholesale inflation since the government introduced the revised WPI series with 2022-23 as the base year.

Fuel and power inflation fell to 20.05% in July from 27.41% in June. Food article inflation also moved lower, though only marginally, to 5.44% from 5.49% a month earlier.

The ministry said mineral oils, food articles, basic metals, non-food articles, manufactured food products and chemicals were among the main groups contributing to WPI inflation in July 2026.

Crude oil prices have remained an important factor for wholesale inflation this year. The West Asia conflict and disruption around the Strait of Hormuz had pushed up international crude and fertiliser costs, with higher input costs also affecting food prices.

Manufactured Products Record Higher Inflation

The moderation in the overall WPI reading was partly offset by an increase in inflation for manufactured products.

Inflation in the manufactured products category rose to 8.29% in July from 7.48% in June. The increase came even as price pressures eased across the fuel, power and food article segments.

The latest wholesale inflation data follows the retail inflation figures released earlier this week. Consumer price inflation increased to 4.45% in July from 4.38% in June, with food prices contributing to the rise.

RBI Holds Policy Rate At 5.25%

The wholesale inflation data was released after the Reserve Bank of India kept its benchmark policy rate unchanged at 5.25% at its monetary policy meeting earlier this month.

The Monetary Policy Committee retained its FY27 retail inflation forecast at 5%. The central bank flagged deficient and uneven southwest monsoon conditions and the possibility of El Niño-related effects in its inflation assessment.

The gap between wholesale and retail inflation remained wide in July, with WPI inflation at 9.78% and consumer inflation at 4.45%.

Wholesale Prices Remain Sensitive To Input Costs

The wholesale inflation reflects price movements across commodities, fuel and power, and manufactured products. Changes in crude oil prices can have a broad impact because energy costs feed into transportation, manufacturing and other business expenses.

For July, the decline in fuel and power as well as food article inflation helped bring the overall WPI reading down from June. But the jump in inflation of manufactured products indicates that price pressures are still uneven in the large components of the wholesale price index.

The next few months should give a better idea of whether the July slowdown is a sign of broader easing in wholesale price pressures or confined to specific sectors.