THEBUSINESSBYTES
BUREAU
NEW
DELHI, JULY 14, 2026
Wholesale price
inflation (WPI) accelerated to 9.87 per cent in June from 9.68 per cent in May,
driven by a sharp rise in food and non-food article prices amid weather-related
disruptions, even as fuel inflation eased during the month.
According to official
data based on the revised 2022-23 base year, food inflation climbed to 5.49 per
cent in June from 3.60 per cent in the previous month, reflecting higher prices
following a rainfall deficit caused by the El Niño phenomenon. Inflation in
non-food articles also remained elevated at 11.07 per cent, while minerals
recorded a 9.45 per cent rise.
In contrast,
inflation in the fuel and power segment moderated to 27.41 per cent in June
from 30.33 per cent in May, aided by softer global commodity and crude oil
prices. Inflation in manufactured products remained unchanged at 7.48 per cent.
June marked the
second monthly release of both the revised Wholesale Price Index (WPI) and the
newly introduced Producer Price Index (PPI) based on the 2022-23 base year. The
government has announced that the PPI will gradually replace the WPI over the
next five years.
The output PPI, which
mirrors producer-level inflation, rose to 9.6 per cent year-on-year in June
from 9.4 per cent in May, largely due to higher agricultural inflation.
The latest wholesale inflation figures come close on the heels of retail inflation, with the Consumer Price Index (CPI) rising to a 17-month high of 4.38 per cent in June from 3.93 per cent in May.
The Reserve Bank of India (RBI), which primarily targets CPI inflation, has been mandated to maintain headline inflation at 4 per cent, with a tolerance band of 2 percentage points on either side. Last month, the central bank raised its inflation forecast for the current financial year to 5.1 per cent from 4.6 per cent, citing mounting input costs and the pass-through of higher global energy prices to domestic fuel prices.
