WPI inflation rises to 9.92 pc in August on higher food, fuel, manufactured item prices

Wholesale price-based inflation rose to 9.92 per cent in August from 9.78 per cent in July, driven by higher prices of food articles, fuel and power, and manufactured products, according to government data released on Monday.

Inflation in the food index increased to 7.05 per cent in August from 6.65 per cent in July.

Wholesale inflation in manufactured products also rose to a series high of 8.37 per cent, compared with 8.29 per cent in July.

In the fuel and power basket, WPI inflation stood at 22.93 per cent in August.

"Across groups, mineral oils (containing petroleum products), food articles, manufacture of food products, manufacture of basic metals, non-food articles, and manufacture of chemicals and chemical products have been major drivers of WPI inflation in August 2026," the Commerce and Industry Ministry said while releasing the data.

WPI inflation has been rising since the beginning of the current fiscal year, with the West Asia conflict and the resultant blockade of the Strait of Hormuz pushing up global crude oil and fertiliser costs, with a spillover impact on food prices.

The majority of India's crude oil imports pass through the Strait of Hormuz.

The Reserve Bank's Monetary Policy Committee last month kept benchmark policy rates unchanged at 5.25 per cent and projected retail inflation at 5 per cent for 2026-27.

The central bank cited deficient and uneven southwest monsoon conditions amid El Nino as among the factors influencing its inflation outlook.