India WPI Inflation Eases to 9.78%
Analysis based on 47 articles · First reported Aug 03, 2026 · Last updated Aug 14, 2026
The marginal easing in wholesale inflation may provide some relief to markets, but persistent food and manufactured goods inflation keeps pressure on the State Bank of India to maintain a hawkish stance. Elevated WPI inflation, driven by fuel and food costs, could weigh on corporate margins and consumer spending, while the RBI's unchanged rates signal a cautious approach amid global supply disruptions.
India's wholesale price inflation, measured by the Wholesale price index (WPI), eased marginally to 9.78% in July 2026 from 9.87% in June, according to provisional data released by the India — Ministry of Trade and Industry. The moderation was driven by a sharp decline in fuel and power inflation, which fell to 20.05% from 27.41% in June. However, inflation in primary articles rose to 8.52% from 7%, and manufactured products inflation increased to 8.29% from 7.48%. The WPI Food Index inflation rose to 6.65% from 6.14%, reflecting persistent food price pressures. The ministry revised May's final WPI inflation upward to 9.88% from the provisional 9.68%. The elevated wholesale inflation is partly attributed to the West Asia war and the blockade of the Strait of Hormuz, which have raised global crude and fertiliser costs. Retail inflation also rose to 4.45% in July from 4.38% in June. The State Bank of India has kept policy rates unchanged at 5.25% and projects retail inflation at 5% for FY27, citing deficient monsoon and El Niño–Southern Oscillation conditions.
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