July WPI inflation eases to 9.78%, fuel and power segment sees a sharp drop

India’s wholesale price inflation (WPI) eased marginally to 9.78% in July, from 9.87% in June. The WPI index fell to 110.0 from 110.2.

“Across groups, Mineral Oils (containing Petroleum Products), Food Article, Manufacture of Basic Metals, Non-Food Articles, Manufacture of Food Products,and Manufacture of Chemicals and Chemical Products have been major drivers of WPI inflation in July 2026,” Ministry of Commerce and Industry said on Friday.

Fuel inflation eases, primary article prices rise

Inflation in the fuel and power segment fell to 20.05% in July, from 27.41% in June. Mineral oil inflation also moderated to 32.4% from 46.48%, while crude petroleum and natural gas inflation fell to 26.99% from 34.75%.

However, inflation in primary articles increased to 8.52% in July from 7% in June. Non-food articles saw a sharp rise, with inflation accelerating to 17.66% from 11.07% during the month.

Manufacturing inflation accelerates

Inflation in manufactured products rose to 8.29% in July, compared with 7.48% in June. Within manufacturing, inflation in chemical products stood at 13.12%, while basic metals recorded 12.56%. Textile prices rose 12.8%, while inflation in electrical equipment stood at 12.34%.

Food product manufacturing inflation also increased to 8.89% in July from 7.2% in June. Meanwhile, motor vehicle manufacturing inflation remained relatively moderate at 1.8%.

Food inflation rises

The WPI Food Index, which has a weight of nearly 25% in the wholesale price index, recorded inflation of 6.65% in July, up from 6.14% in June. Food index consists of ‘Food Articles’ from Primary Articles major group, and ‘Manufacture of Food Products’ from Manufactured Products major group.

Food article inflation, however, moderated slightly to 5.44% from 5.49%. The increase in the overall Food Index was driven in part by higher inflation in manufactured food products.

FY27 wholesale inflation remains elevated

Wholesale inflation has remained elevated in the first four months of FY27. For the April-July period, cumulative WPI inflation stood at 9.47%, sharply higher than -0.2% in the same period of FY26.

Fuel and power recorded the highest cumulative inflation at 25.8% during April-July FY27. Mineral oil inflation stood at 42.4%, while crude petroleum and natural gas prices rose 44.62% over the period.

Manufactured product inflation during the April-July period stood at 7.48%, while the Food Index recorded inflation of 5.12%.

May WPI inflation revised higher

The government also revised the final WPI index for May 2026 to 110.1 from 109.9. As a result, May WPI inflation was revised upward to 9.88% from the earlier provisional estimate of 9.68%.

TOPICSfuelWPIWPI InflationThis article was first uploaded on August fourteen, twenty twenty-six, at twenty-two minutes past twelve in the night. © IE Online Media Services (P) Ltd