India WPI Inflation Rises to 9.92% in August 2026: Fuel, Food and Manufacturing Prices Remain Key Drivers
India’s wholesale inflation remained elevated in August 2026, with the Wholesale Price Index (WPI) inflation rate rising to 9.92% year-on-year, compared with 9.78% in July 2026.
The provisional WPI data was released by the Ministry of Commerce & Industry on September 14, 2026, with the government release posted at 12:01 PM.
The latest data shows that wholesale price pressures remained high across several important parts of the economy, particularly Fuel & Power, Primary Articles, and Manufactured Products.
August 2026 WPI Inflation: Key Numbers
According to the government data:
- All-commodities WPI inflation: 9.92%
- July 2026: 9.78%
- Primary Articles inflation: 7.76%
- Fuel & Power inflation: 22.93%
- Manufactured Products inflation: 8.37%
- WPI Food Index inflation: 7.05%
- August All-Commodities WPI Index: 110.8
- July All-Commodities WPI Index: 110.0
The figures are provisional.
Fuel and Power Inflation Jumps to 22.93%
The biggest area of concern in the August WPI data is the Fuel & Power category.
Fuel & Power inflation increased to 22.93% in August from 20.05% in July.
The government data also shows that mineral oils and crude petroleum and natural gas were among the important components of the increase.
For investors, this is an important signal because energy costs can have a direct bearing on businesses that depend heavily on fuel and other energy inputs.
Manufactured Products Inflation Also Remains High
Inflation in Manufactured Products stood at 8.37% in August, compared with 8.29% in July.
The government identified several groups as major drivers of overall WPI inflation during August, including:
- Mineral Oils containing petroleum products
- Food Articles
- Manufacture of Food Products
- Manufacture of Basic Metals
- Non-Food Articles
- Manufacture of Chemicals and Chemical Products
The data therefore points to continued price pressure across several industrial and manufacturing inputs.
Food Inflation Rises to 7.05%
The WPI Food Index, which carries a weight of 24.99% in the WPI basket, recorded inflation of 7.05% in August, compared with 6.65% in July.
The Food Index includes food articles from the Primary Articles group as well as manufactured food products.
The increase is relevant for companies operating in food, FMCG and other consumer-related businesses because changes in commodity and food prices can influence input costs and pricing decisions.
Primary Articles Inflation Moderates
Inflation in Primary Articles declined to 7.76% in August from 8.52% in July.
Despite this moderation, the category remained an important contributor to overall wholesale inflation.
The August Primary Articles index stood at 118.1, compared with 117.2 in July.
What Does the August WPI Data Mean for Investors?
The most important takeaway from the latest data is that wholesale inflation remains elevated, but the impact will vary considerably across sectors and individual companies.
1. Input-intensive companies could face margin pressure
Businesses that use large quantities of fuel, metals, chemicals or other commodities may face higher operating costs when input prices rise.
The effect on profitability will depend on how much of the additional cost companies can pass on to customers.
2. Companies with pricing power may be better positioned
Businesses with strong brands, limited competition or strong demand may have greater ability to increase selling prices.
Investors should therefore pay attention to management commentary on raw-material costs, pricing, gross margins and operating margins in upcoming results.
3. Commodity producers could see a different impact
Higher commodity prices can benefit producers of certain raw materials, although the actual impact depends on the commodity and individual companies’ production costs.
Therefore, the same inflationary pressure can be positive for one company and negative for another within the same broad sector.
4. Energy-sensitive businesses need closer monitoring
With Fuel & Power inflation at 22.93%, companies with significant exposure to energy and transportation costs could remain sensitive to changes in fuel prices.
Industries such as transportation, logistics and other energy-intensive businesses may therefore warrant closer attention from investors.
5. Metals and chemical companies remain important to watch
Basic metals and chemicals were among the groups identified by the government as major drivers of WPI inflation in August.
This makes the direction of commodity prices particularly relevant for investors tracking metal producers as well as businesses that consume these materials.
WPI Inflation vs Corporate Profitability
A high WPI number does not automatically mean that corporate earnings will fall.
The key question is who absorbs the higher prices.
If a company can pass higher input costs to customers, the effect on profitability may be limited.
However, if selling prices cannot be increased because of weak demand or competitive pressure, higher input costs can reduce margins.
This makes the upcoming corporate earnings commentary particularly important.
New WPI Series Uses 2022-23 as Base Year
The August 2026 release is based on the revised WPI series with 2022-23 as the base year.
The government has provided WPI indices and inflation rates for All Commodities and the major groups of Primary Articles, Fuel & Power, and Manufactured Products.
The release also contains detailed data for individual manufacturing categories and commodity groups.
Government Also Releases Output PPI Data
Alongside the WPI figures, the release provides provisional estimates for the Output Producer Price Index (PPI) for August 2026.
The All-India Output PPI for All Commodities stood at 110.8 in August, compared with 109.9 in July.
The Output PPI indices for Agriculture, Forestry & Fishing, Mining & Quarrying, Manufactured Products and Electricity were 116.5, 122.0, 109.7 and 90.9, respectively, in August.
The government has also provided trial Input Producer Price Index data for the manufacturing sector.
The trial Input PPI for Manufacturing stood at 104.2 in August 2026.
Investor Takeaway
India’s August 2026 WPI inflation of 9.92% shows that wholesale price pressures remain high.
The headline increase from 9.78% in July to 9.92% in August is relatively modest, but the composition of inflation deserves attention.
The sharpest pressure was visible in Fuel & Power, where inflation reached 22.93%, while Manufactured Products inflation remained at 8.37% and the Food Index rose to 7.05%.
For investors, the key issue is likely to be the effect of these input-price pressures on corporate margins, pricing power and earnings.
Companies exposed to fuel, metals, chemicals and other commodities may see different effects depending on their cost structure and ability to pass higher costs to customers.
Therefore, investors should not treat the 9.92% WPI figure as uniformly positive or negative for the stock market. Sector exposure and company-level pricing power will determine the actual impact.
WPI August 2026: Impact in Brief
Negative for:
Energy-intensive businesses, companies with high raw-material costs and limited ability to pass costs to customers.
Potentially positive for:
Selected commodity producers and businesses that can benefit from higher realisations.
Key risk:
Sustained input-cost pressure could affect corporate margins if companies cannot fully pass the increase to customers.
Key investor signal:
Watch crude oil, fuel, metals, chemicals, food prices and corporate margin commentary.
Overall:
The August WPI data keeps wholesale inflation firmly on the investor radar, particularly because Fuel & Power inflation remains above 20%.
Source
Ministry of Commerce & Industry, Government of India — Provisional Estimates of Wholesale Price Index (Base Year 2022-23) for August 2026, released September 14, 2026.
The figures cited above are based on the government release supplied for this article.
Disclaimer: This article is for information and educational purposes only and should not be considered investment advice. Investors should conduct their own research or consult a SEBI-registered investment adviser before making investment decisions.