Full Breakdown
Record WPI Inflation Surge in September 2026
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September 2026 WPI Inflation Hits 11.39 % Record
India’s Wholesale Price Index rose to 11.39 % year-on-year in September 2026, up from 9.92 % in August. Fuel-and-power inflation hit 25.85 %, the food index 8.66 %, and manufactured products 9.76 %. All three major components were higher than a year earlier.
Background & Context
The revised series, introduced in June 2022 with 2022-23 as the base year and a 957-item basket, replaces the older index. The surge follows a fiscal-year trend driven in part by the West Asia conflict and the Strait of Hormuz blockade, which lifted global crude-oil and fertiliser costs and spilled over into food and other commodities.
Data & Statistics
- Overall WPI index: 112.5 in September (up from 110.8).
- Fuel & power: 25.85 % (mineral oils 40.02 %, crude petroleum & natural gas 57.32 %, coal & lignite 9.31 %).
- Food index: 8.66 % (food articles 8.14 %, manufactured food products 9.44 %).
- Manufactured products: 9.76 % (basic metals 16.96 %, chemicals 16.74 %, textiles 13.85 %, rubber & plastic 13.47 %, electrical equipment 11.93 %).
- Primary articles: 8.67 %; non-food articles eased to 10.28 % from 14.79 %.
- Cumulative April-September wholesale inflation: 9.85 %, versus a -0.20 % decline the previous fiscal year.
Official Statements & Responses
Rahul Agrawal, ICRA principal economist, said the non-food manufactured goods segment drove more than half of the 147-basis-point rise in headline inflation. Anil Gupta, PHD Chamber president, warned businesses to monitor input costs closely. Barclays noted that international energy and metal prices remain elevated. RBI officials indicated that another rate increase remains possible at the December policy meeting.
Why It Matters
Higher wholesale prices raise raw-material and energy costs for manufacturers, compressing margins and increasing working-capital needs. The core WPI at 9.8 % could lift the core consumer-price index, which sits around 4.3 %, and may prompt further RBI tightening, affecting borrowing costs economy-wide.
Conflicting Reports & Gaps
A Union Bank of India note projected September WPI at 10.60 %, lower than the 11.39 % reported. The forecast cited vegetable price pressures and a low base effect, but the actual figure points to stronger fuel-price and input-cost dynamics. Evidence on the speed of WPI-to-retail-inflation transmission remains limited.
What’s Next
The RBI’s Monetary Policy Committee will review trends at its December meeting, with the possibility of additional rate adjustments. Market analysts expect that continued elevation in global energy and metal prices could keep wholesale inflation upward through the third quarter of FY 2027.
Verbatim Quotes
- “The non-food manufactured goods (core WPI) segment accounted for more than half of the 147 bps uptick in the headline inflation print in September relative to August 2026, reflecting the impact of the passthrough of input cost pressures,” — Rahul Agrawal, ICRA principal economist
- “The increase in wholesale inflation across food articles, fuel and power, and manufactured products highlights the need for businesses to closely monitor input costs and pricing conditions,” — Anil Gupta, President, PHD Chamber of Commerce and Industry
- “With international energy and metal prices elevated, wholesale and producer price inflation may accelerate in coming months,” — Barclays, research note