There’s some relief for the general public on the inflation front, as the country’s wholesale price index (WPI) inflation fell slightly to 9.78 per cent in July 2026, down from 9.87 per cent in June. According to preliminary data released by the Ministry of Commerce and Industry on Friday, the wholesale price index for all commodities stood at 110.0 in July, compared to 110.2 in June. However, inflation remains high.
According to government data, wholesale inflation recorded a slight annual decline in July. It was 9.78 per cent in July compared to 9.87 per cent in June. This means the inflation rate decreased by approximately 0.09 percentage points. It should be noted that wholesale inflation data is divided into three major segments: primary articles, fuel and power, and manufacturing products. Inflation rates for these three sectors varied significantly in July.
Big drop in fuel-power inflation
Inflation in the fuel and power category declined to 20.05 per cent in July, compared to 27.41 per cent in June. This means that inflation in this sector has declined significantly. Meanwhile, inflation in primary articles rose to 8.52 per cent in July, compared to 7 per cent in June. Similarly, inflation in manufactured products increased from 7.48 per cent to 8.29 per cent.
Increased pressure on food and drink
Food items also played a significant role in wholesale inflation. The WPI Food Index inflation rate was 6.65 per cent in July, compared to 6.14 per cent in June. This means food inflation has increased. According to government data, food articles, non-food articles, basic metals, food products, and chemical products played a significant role in the July wholesale inflation.
“Overall, the immediate outlook is one of elevated but potentially moderating wholesale inflation. The key risks are renewed increases in global crude and commodity prices, persistence of metal and chemical price pressures, and weather-related food supply disruptions. Conversely, easing energy costs, improved domestic supply conditions and moderation in input prices could support a gradual decline in WPI inflation,” said Dr Ranjeet Mehta, CEO & Secretary General, PHDCCI.
| Month | WPI |
|---|---|
| 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% |
| July 2026 | 9.78% |
The inflation figure for May also changed
The government also revised the final wholesale inflation figure for May 2026. The final index for May rose to 110.1 from the initial estimate of 109.9. The wholesale inflation rate for May has also been revised to 9.88 per cent, from the previous estimate of 9.68 per cent.
