Key Details
The headline moderation was narrow: the overall Wholesale Price Index (WPI) declined by 0.2% from June, but inflation accelerated across several categories that affect farming, food processing and industrial production. The provisional July estimate was compiled with a 78.55% weighted response rate and may be revised when final data become available.
Indicator | June 2026 | July 2026 | What Changed? |
|---|---|---|---|
Overall WPI inflation | 9.87% | 9.78% | Marginal moderation |
Primary Articles | 7.00% | 8.52% | Inflation strengthened |
Fuel and Power | 27.41% | 20.05% | Sharp easing, but remained elevated |
Manufactured Products | 7.48% | 8.29% | Factory-gate pressures increased |
WPI Food Index | 6.14% | 6.65% | Food inflation rose |
Fuel Prices Drove the Headline Moderation
The Fuel and Power index fell by 5.1% between June and July, producing most of the relief in the headline WPI reading. Within the category:
Mineral-oil inflation declined from 46.48% to 32.40%.
Crude-petroleum and natural-gas inflation fell from 34.75% to 26.99%.
Overall Fuel and Power inflation moderated to 20.05%, remaining substantially above the general WPI rate.
The figures therefore show a reduction in the intensity of the energy-price shock, not its disappearance.
Food and Industrial Costs Continued to Build
Food did not contribute to July’s moderation. The combined WPI Food Index increased by 1.1% over June, while its annual inflation rate rose to 6.65%.
Inflation in manufactured food products accelerated from 7.20% to 8.89%, even though inflation in unprocessed food articles edged down slightly to 5.44%. This divergence suggests that processing and other input costs are exerting pressure beyond movements in farm-gate food prices.
Manufactured-product inflation also rose to 8.29%. Notable annual increases included:
Chemicals and chemical products: 13.12%
Basic metals: 12.56%
Electrical equipment: 12.34%
Textiles: 12.80%
Rubber and plastic products: 10.38%
These categories supply inputs to a wide range of industries, creating the possibility of broader cost transmission through manufacturing supply chains.
Wholesale Inflation Remains Elevated in FY2026–27
The marginal July decline follows a steep rise earlier in the financial year: WPI inflation increased from 3.98% in March to 8.36% in April, before reaching 9.88% in May.
For April–July 2026, cumulative wholesale inflation stood at 9.47%, compared with –0.20% during the corresponding period of FY2025–26. Fuel and Power recorded cumulative inflation of 25.80%, while manufactured products registered 7.48%.
What Is Wholesale Price Index (WPI) Inflation?
The Wholesale Price Index measures changes in the prices of goods at the wholesale or producer-facing stage, before they reach consumers. It covers primary articles, fuel and power, and manufactured products.
WPI does not directly measure household living costs, but sustained increases can signal higher input costs for businesses and possible downstream pressure on retail prices.
Policy Relevance
The moderation is energy-led: July’s lower headline rate reflects falling fuel prices, while food and manufacturing inflation moved higher.
Industrial cost pressures are broadening: Rising prices for metals, chemicals, textiles and electrical equipment can affect construction, manufacturing and infrastructure costs.
Food inflation requires attention beyond agricultural produce: Faster inflation in manufactured food products indicates that processing, packaging, transport and other input costs also matter.
The next few releases will show whether fuel relief persists: A durable decline in wholesale inflation will require continued energy-price moderation alongside softer food and manufactured-product inflation.
Provisional data warrant caution: July’s estimate may change as reporting coverage improves and the index is finalised.
Follow the Full Release Here: Provisional Estimates of Wholesale Price Index for July 2026