Wholesale inflation inches up to 9.87% in June as fuel, primary articles keep price pressures elevated
The Fuel and Power category remained the biggest contributor to wholesale inflation, registering 27.41% year-on-year inflation in June, though slightly lower than 30.33% recorded in May.
According to the data, the WPI for all commodities rose from 109.9 in May to 110.2 in June, while the annual inflation rate increased by 19 basis points to 9.87%.
NEW DELHI: India’s wholesale inflation edged up to 9.87% year-on-year in June 2026, compared with 9.68% in May 2026, driven primarily by higher prices of fuel and power, primary articles, and manufactured products, according to provisional data released by the Ministry of Commerce and Industry on Tuesday.
The latest Wholesale Price Index (WPI) figures indicate that inflationary pressures remain elevated across the economy despite only a marginal month-on-month increase in the headline index.
According to the data, the WPI for all commodities rose from 109.9 in May to 110.2 in June, while the annual inflation rate increased by 19 basis points to 9.87%. The government also revised April’s final WPI inflation upward to 8.36%, from the provisional estimate of 8.26%.
Fuel & Power Continue to Drive Inflation
The Fuel and Power category remained the biggest contributor to wholesale inflation, registering 27.41% year-on-year inflation in June, though slightly lower than 30.33% recorded in May.
Within the segment:
- Mineral oils inflation stood at 46.48%
- Crude petroleum & natural gas inflation eased to 34.75%
- Coal & lignite remained in deflation at -1.57%
- Electricity prices continued to decline, posting -0.76% inflation.
Primary Articles Inflation Climbs
Inflation in Primary Articles increased to 7.00% in June from 4.99% in May.
The rise was led by:
- Non-food articles: 11.07%
- Minerals: 9.45%
- Food articles: 5.49%
The data suggest that raw material prices continue to remain firm across several sectors.
Manufactured Products Hold Steady
Inflation in Manufactured Products, which carries the highest weight in the WPI basket, remained unchanged at 7.48% in June.
Among major manufacturing segments:
- Food products: 7.20%
- Textiles: 10.85%
- Chemicals & chemical products: 12.78%
- Basic metals: 12.31%
- Electrical equipment: 11.03%
Meanwhile, computer, electronic and optical products continued to witness deflation, with inflation at -1.53%.
Food Inflation Picks Up
The WPI Food Index, which combines food articles and manufactured food products, rose to 115.8 in June from 114.0 in May.
Food inflation accelerated to 6.14%, compared with 4.49% in the previous month, indicating sustained price pressures in the food supply chain.
Output Producer Price Index Rises
The government also released provisional Output Producer Price Index (Output PPI) data.
The Output PPI for all commodities increased to 109.9 in June from 109.6 in May. Sector-wise Output PPI stood at:
- Agriculture, Forestry & Fishing: 114.1
- Mining & Quarrying: 121.5
- Manufactured Products: 109.2
- Electricity: 92.0
The data reflect continued cost pressures at the producer level, particularly in mining and manufacturing.
Manufacturing Input Costs Edge Higher
The Trial Input Producer Price Index (Input PPI) for the manufacturing sector also moved up to 107.1 in June from 104.9 in May, indicating higher input costs for manufacturers. The increase was driven by several industrial segments, including food products, beverages, textiles, chemicals, fabricated metal products and electrical equipment.
Outlook
The June WPI data suggest that while wholesale inflation has largely stabilized around the 10% mark, energy prices and input costs continue to exert upward pressure across supply chains. The persistence of elevated fuel costs and rising food inflation could influence pricing decisions by manufacturers and may have implications for retail inflation in the coming months.
📊 Digital India Times Digest
Wholesale Inflation Rises to 9.87% in June 2026 as Fuel and Food Prices Stay Elevated
India’s Wholesale Price Index (WPI) inflation increased marginally to 9.87% in June 2026 from 9.68% in May, according to the Ministry of Commerce & Industry. The rise was mainly driven by higher prices of fuel & power, primary articles, and manufactured products. While fuel inflation remained exceptionally high, food inflation also accelerated, signalling continued price pressures across the economy.
📌 Key Highlights
- Headline WPI inflation: 9.87% (June 2026), up from 9.68% in May.
- Fuel & Power inflation: 27.41%, remaining the largest contributor to wholesale inflation.
- Primary Articles inflation: Increased sharply to 7.00% from 4.99%.
- Manufactured Products inflation: Stable at 7.48%.
- Food Index inflation: Accelerated to 6.14%, indicating rising food prices.
- Mineral Oils inflation: Continued at a very high 46.48%.
- Output Producer Price Index (PPI): Rose to 109.9, reflecting persistent producer-level cost pressures.
- Manufacturing Input PPI: Increased to 107.1, suggesting higher input costs for industries.
🎯 Why It Matters
- Persistent wholesale inflation increases production costs across industries.
- Higher fuel prices continue to ripple through transportation, logistics and manufacturing.
- Rising food inflation could eventually influence retail inflation and household budgets.
- Businesses may face margin pressures as input costs remain elevated.
- The data will be closely monitored by policymakers and the Reserve Bank of India while assessing inflation trends.
💡 UPSC / Competitive Exam Takeaway
Wholesale Price Index (WPI) measures inflation at the producer or wholesale level and is compiled by the Office of the Economic Adviser, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce & Industry.
- Base Year: 2022-23
- Released: Monthly
- Measures: Price changes of goods traded at the wholesale level.
- Unlike CPI: WPI does not include services and reflects producer-side inflation.
Key Numbers at a Glance
| Indicator | June 2026 | May 2026 |
|---|---|---|
| WPI Inflation (YoY) | 9.87% | 9.68% |
| Primary Articles | 7.00% | 4.99% |
| Fuel & Power | 27.41% | 30.33% |
| Manufactured Products | 7.48% | 7.48% |
| Food Index Inflation | 6.14% | 4.49% |
