Wholesale inflation hits 9.87% in June 2026: WPI

Wholesale inflation accelerates in June

India’s wholesale price inflation accelerated again in June 2026, moving closer to the double-digit mark as higher prices of food items, mineral oils, basic metals and chemicals kept cost pressures elevated. Government data released on Tuesday showed the Wholesale Price Index (WPI) inflation rose to 9.87% in June, up from 9.68% in May. The headline WPI level for all commodities also moved up to 110.2 in June from 109.9 a month earlier.

The Ministry of Commerce and Industry said the 9.87% reading was on a year-on-year basis for June 2026, indicating that producers and businesses continued to face broad-based increases across key inputs. The data adds to a run of elevated wholesale prints at a time when firms have been managing higher raw material and logistics costs. While some categories cooled sequentially, the overall basket remained under pressure because the heavier-weight items did not ease enough.

What the government data showed

The latest release pointed to multiple drivers rather than a single shock, with food-related categories and energy-linked items both adding to the headline. The ministry flagged mineral oils (petroleum products), food articles, manufacture of basic metals, and manufacture of chemicals and chemical products as major drivers of WPI inflation in June 2026.

Alongside the inflation rate, the index movement signalled a continued rise in wholesale prices compared with the previous month. The WPI for all commodities at 110.2 in June versus 109.9 in May reflects a month-on-month uptick in the overall price level even as individual sub-indices moved in different directions.

Food articles regain momentum

Food articles remained a significant contributor to the rise in wholesale prices. Inflation in food articles accelerated to 5.49% in June from 3.60% in May. The broader WPI Food Index, which combines food articles and manufactured food products, also climbed, with inflation rising to 6.14% in June from 4.49% in May.

The index level for the WPI Food Index increased to 115.8 in June from 114.0 in May, pointing to a faster pace of price build-up in the food basket. This matters for businesses that rely on agri inputs, processors and distributors, because wholesale food inflation often influences procurement costs and pricing decisions across supply chains.

Non-food articles and minerals: firmer inputs

Prices of non-food articles recorded a stronger increase, with inflation rising to 11.07% in June from 9.49% in May. This category typically captures items such as fibres and other primary inputs, and the rise suggests that cost pressures were not limited to food.

The June data also cited inflation in minerals at 9.45%. Taken together with the ministry’s mention of basic metals and chemicals as key drivers, the picture is of continued pressure in industrial input categories that feed into manufacturing costs.

Fuel and power inflation cools, but remains high

Although inflation in the fuel and power category moderated compared with the previous month, it remained elevated. Fuel and power inflation stood at 27.41% in June, easing from 30.33% in May.

Within the category, mineral oils continued to register sharp price increases, though inflation softened to 46.48% in June from 49.82% in May. Inflation in crude petroleum and natural gas slowed sharply to 34.75% in June from 61.51% a month earlier, pointing to a significant deceleration within that component.

Electricity prices, meanwhile, continued to remain in deflation at 0.76%, indicating that not all energy components were pushing the headline higher.

Geopolitical channel: West Asia and the Strait of Hormuz

The PTI report linked the sharp rise in WPI inflation to the impact of the West Asia crisis and an effective blockade of the Strait of Hormuz, a key route through which a large share of crude oil imports move. The report also pointed to spillover effects on food prices.

This channel is important for wholesale inflation because WPI assigns a larger weight to fuel products than retail inflation measures. When energy prices rise at the wholesale level, they can feed into transportation, fertilisers, packaging and manufacturing inputs, keeping cost pressures elevated even if some categories cool.

Retail inflation also edges up in June

Separate Consumer Price Index (CPI) data cited in the provided material showed June CPI inflation rose to 4.38% from 3.93% in May, driven mainly by higher food prices. The CPI release pointed to cereals, pulses, vegetables, spices and dairy products among the key drivers, along with firmer fuel and energy costs.

While CPI is a retail measure, the coexistence of higher CPI and elevated WPI suggests that both household-facing prices and business input costs were under pressure in June. Economists cited in the text noted that wholesale price pressures remain elevated, indicating continued input cost stress for businesses.

What analysts are saying

Shashwat Singh, Fundamental Analyst at Bajaj Broking, said wholesale inflation remained under pressure due to rising food and raw material prices. He noted that the June 2026 WPI reading accelerated to 9.87% year-on-year from 9.68% in May, and highlighted the WPI Food Index inflation rising to 6.14%.

The material also referenced a Reuters survey that expected wholesale price inflation to ease only marginally to 9.15% in June from 9.68% in May. The final official print at 9.87% indicates inflation was higher than that surveyed expectation.

Key numbers at a glance

Market impact: what elevated WPI implies

The June WPI reading suggests businesses are still dealing with higher input costs across commodities, energy-linked items and some manufacturing inputs such as basic metals and chemicals. Even though fuel and power inflation eased to 27.41%, the level remains high enough to influence logistics and production costs.

Food inflation’s pickup, with food articles inflation at 5.49% and the WPI Food Index inflation at 6.14%, can matter for sectors with significant raw food procurement, including packaged foods and food services. For investors, the mix of sticky input costs and a higher CPI print in June can shape expectations around margins and pricing power in consumer-facing businesses.

Why this print matters

At 9.87%, WPI inflation is nearing double digits, underscoring that wholesale-side cost pressures have not normalised. The composition also matters: energy-linked inflation is cooling but still elevated, while food and non-food primary articles are gaining momentum. That combination can be challenging because it affects both industrial inputs and consumer-linked categories.

The ministry’s identification of petroleum products, food articles, basic metals and chemicals as key drivers helps clarify where the pressures are concentrated. It also provides a lens to track subsequent prints, especially if energy disruptions tied to the West Asia crisis continue to affect import costs and supply chains.

Conclusion

India’s wholesale inflation rose to 9.87% in June 2026 from 9.68% in May, with higher food and non-food primary articles and still-elevated energy costs keeping the WPI under pressure. Fuel and power inflation eased to 27.41%, but mineral oils and crude petroleum and natural gas remained significant contributors.

With June CPI inflation also higher at 4.38%, attention will stay on how input costs evolve across food, fuel and industrial materials in upcoming releases from the Commerce and Industry Ministry.