Global commodity, energy prices drive June WPI inflation to 9.87%; govt says retail inflation remains under control

The rise in India's wholesale price inflation to 9.87% in June was largely driven by higher global commodity and energy prices, the government informed Parliament on Monday, while asserting that a series of policy measures has helped keep retail inflation under control.

Replying to a question in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said wholesale inflation was mainly influenced by price pressures in commodities that are closely linked to international markets, including mineral oils, petroleum products, food articles, basic metals, and chemicals and chemical products.

Wholesale Price Index (WPI)-based inflation rose to 9.87% in June from 9.68% in May on a year-on-year basis.

"The rise in WPI inflation is largely driven by the price pressures in commodities that are more sensitive to global energy and commodity price movements, particularly mineral oils (including petroleum products), food articles, basic metals, chemicals and chemical products," Chaudhary said in a written reply.

The minister said the government has been actively taking measures to contain inflation and reduce its impact on consumers. These include building buffer stocks of essential food items, selling government-procured grains in the open market to improve supplies, and adjusting trade policies when required.

According to the government, these interventions have helped keep retail inflation under control. Consumer Price Index (CPI)-based inflation remained below the Reserve Bank of India's 4% target during the last two quarters, averaging 3.1% in the January-March quarter of FY26 and 3.9% in the April-June quarter of FY27.

Chaudhary also said the Centre, in consultation with the Reserve Bank of India, reviews and notifies the inflation target every five years to ensure price stability while supporting economic growth.

The government had, on March 25, 2026, retained the CPI inflation target at 4%, with a tolerance band of 2-6%, for the five-year period from April 1, 2026, to March 31, 2031.

However, retail inflation moved higher in June, rising to a provisional 4.38% from 3.93% in May, mainly due to an increase in food and transport costs, indicating that price pressures remain a concern despite the moderation seen in recent quarters.