Wholesale inflation accelerates to 9.87% in June as food prices rise: Govt
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Wholesale price inflation edged higher in June, driven by a broad-based increase in food prices and continued strength in manufactured goods, even as fuel inflation moderated from the previous month amid easing crude oil prices.
Data released by the Ministry of Commerce and Industry on Tuesday showed the Wholesale Price Index (WPI)-based inflation rose to 9.87% in June, compared with 9.68% in May, marking the third consecutive month of elevated wholesale price pressures. The WPI index for all commodities increased to 110.2 in June from 109.9 in May.
The increase was primarily driven by higher prices of food articles, mineral oil-based products, basic metals, and chemicals, according to the ministry. While fuel prices remained the biggest contributor to inflation, the pace of increase eased during the month.
Inflation in primary articles accelerated to 7% in June from 4.99% in May, led by a sharp increase in food prices. The WPI Food Index climbed to 6.14% year-on-year in June from 4.49% a month earlier, indicating that food inflation is once again emerging as a significant source of price pressure.
The fuel and power category continued to record the highest inflation among the three major groups at 27.41%, although it moderated from 30.33% in May as international crude oil prices softened during the month. Within the category, inflation in mineral oils eased to 46.48% from 49.82%, while crude petroleum and natural gas inflation slowed sharply to 34.75% from 61.51%.
Inflation in manufactured products, which account for more than 63% of the WPI basket, remained unchanged at 7.48%. Price pressures persisted across several industries, including basic metals (12.31%), chemicals and chemical products (12.78%), electrical equipment (11.03%), and textiles (10.85%), suggesting that input cost pressures continue to filter through the manufacturing sector.
The government also revised the final WPI inflation for April 2026 upward to 8.36% from the provisional estimate of 8.26%, reflecting updated price data. The provisional June estimate was compiled with a weighted response rate of 82.6%, while the final April estimate was based on a response rate of 97.5%.
The data also showed that the Output Producer Price Index (PPI) for all commodities inched up to 109.9 in June from 109.6 in May, indicating continued pricing pressure at the producer level. Meanwhile, the trial Input Producer Price Index (IPPI) for the manufacturing sector rose to 107.1 in June from 104.9 in May, signalling an increase in input costs faced by manufacturers.