A sharp rise in food and non-food prices pushed wholesale inflation to 9.87 per cent in June, up from 9.68 per cent in May, according to the latest data released by the government. Fuel and Power recorded the highest inflation among major groups at 27.41 per cent, followed by Manufactured Products at 7.48 per cent and Primary Articles at 7 per cent. The increase was largely driven by mineral oils, crude petroleum and natural gas, chemicals and chemical products, and basic metals.
“Rise in energy, petrochemicals and metals points to renewed cost-push inflation with broad-based acceleration, with inflation in Fuel and Power increasing to 27.41%, Manufactured Products to 7.48%, and Primary Articles to 7 per cent. Persistent increases in wholesale prices, particularly in upstream industries, could gradually pass through to downstream manufacturing and consumer prices with a lag unless offset by productivity gains or lower input costs,” said Rajeev Juneja, President, PHDCCI.
Monthly inflation rate in the past one year:
| Month | Wholesale Inflation Rate |
| May 2025 | 0.39% |
| June 2025 | -0.13% |
| July 2025 | -0.58% |
| August 2025 | 0.52% |
| September 2025 | 0.13% |
| October 2025 | -1.21% |
| November 2025 | -0.32% |
| December 2025 | 0.83% |
| January 2026 | 1.81% |
| February 2026 | 2.13% |
| March 2026 | 3.88% |
| April 2026 | 8.26% |
| May 2026 | 9.68% |
| June 2026 | 9.87% |
The revised WPI basket has been expanded from 697 to 957 items, incorporating emerging sectors and improving the representation of the evolving structure of the Indian economy. The new series also adopts Gross Value of Output (GVO) as the basis for weights, introduces improved methods for index compilation and missing data imputation, and reorganises the energy basket by placing crude petroleum and natural gas under the Fuel and Power group. Renewable energy sources, including solar and wind, as well as nuclear electricity, have also been incorporated into the index.
“The latest wholesale inflation data indicate that energy and commodity prices continue to be the principal drivers of producer inflation, due to persistent geopolitical challenges, which will put pressure on corporate margins in the short term”, said Dr Ranjeet Mehta, CEO & Secretary General, PHDCCI.
RBI raises inflation forecast for the current financial year
The government has mandated that overall inflation be maintained at 4 per cent, with a 2 per cent margin. Last month, the RBI raised its inflation forecast for the current fiscal year to 5.1 per cent from 4.6 per cent. The main reason cited was the rising global energy prices, which would impact retail petrol and diesel prices, leading to higher costs. Meanwhile, India’s retail inflation rose to 4.38 per cent in June, up from 3.93 per cent in May.
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