WPI Inflation Jumps to 11.39% in September on Fuel, Metal Prices

India’s wholesale price inflation climbed to 11.39% in September 2026 from 9.92% in August, as prices of crude oil, natural gas, basic metals, and food rose sharply, according to provisional data released by the Ministry of Commerce and Industry on Wednesday, October 14. The print keeps wholesale inflation in double digits and marks a further acceleration from 9.78% in July.

The all-commodities Wholesale Price Index (WPI) rose to 112.5 in September from 110.8 in August, a month-on-month increase of about 1.5%. Cumulative wholesale inflation for April–September 2026-27 stood at 9.85%, against a contraction of 0.20% in the same period of 2025-26, according to the official data.

Fuel and metals lead the climb

Fuel and power remained the fastest-rising major group, with inflation accelerating to 25.85% from 22.93% in August. Within it, mineral oils rose 40.02%, up from 38.48%, while coal and lignite jumped to 9.31% from 1.57%. Electricity prices, however, were 0.43% lower than a year earlier.

Crude petroleum and natural gas saw the steepest increase, with inflation surging to 57.32% from 34.41%. The index for the category rose about 18% in a single month. Basic metals inflation quickened to 16.96% from 10.88%.

Manufactured products, which carry a weight of 63.13% in the index and contribute the most to the headline number, recorded inflation of 9.76% against 8.37% in the previous month. Textiles, rubber and plastic products, and electrical equipment all posted double-digit price increases, the data showed.

Primary articles: inflation rose to 8.67% from 7.76%. The WPI food index, which combines food articles and manufactured food products, increased to 8.66% from 7.05%.

Pressure on margins and policy

The sharp rise in wholesale prices points to higher input costs for manufacturers, particularly in energy-intensive sectors such as metals, chemicals, plastics, and textiles. Companies that cannot fully pass on these costs may see pressure on operating margins in the coming quarters.

The data comes a week after the Reserve Bank of India’s Monetary Policy Committee raised the repo rate by 25 basis points to 5.50%, citing mounting inflation risks. The central bank projected consumer price inflation for FY27 at 5.2%. Retail inflation, measured by the Consumer Price Index, rose to 5.54% in September, data released earlier this week showed.

The widening gap between wholesale and retail inflation suggests that a part of the producer-level cost increase is yet to reach consumers. Economists typically treat such a gap as a signal of further pass-through to retail prices if input costs stay elevated.

The September estimate is based on a weighted response rate of 83.4% and may be revised, the ministry said. The final index for July was retained at 110.0, with inflation for the month unchanged at 9.78%. The series uses 2022-23 as its base year.

The government will release WPI data for October on November 16. Industry and policymakers will watch global crude prices and metal costs closely, as these will largely decide whether wholesale inflation stays in double digits through the rest of the financial year and how the RBI approaches its next policy review.