India WPI inflation rises to 9.87%

In June 2026, India's wholesale price index (WPI) inflation rose to 9.87% year-on-year, up from 9.68% in May, driven largely by higher global commodity and energy prices, particularly in mineral oils, food articles, basic metals, and chemicals. The government, through Minister of State for Finance Pankaj Chaudhary, informed the India — Lok Sabha that these price pressures are sensitive to international market movements. To mitigate inflation, the government has implemented measures such as augmenting buffer stocks, releasing grains in the open market, and calibrating trade policies. As a result, retail inflation (CPI) has remained below the RBI's 4% target for the past two quarters, averaging 3.1% in Q4 FY26 and 3.9% in Q1 FY27. However, June CPI inflation rose to a provisional 4.38%, up from 3.93% in May, due to higher food and transport costs. The government, in consultation with the RBI, has retained the CPI inflation target at 4% with a tolerance band of 2-6% for the period April 2026 to March 2031.