India’s WPI-based inflation rises to 9.68% in May:How does rise in wholesale prices of items impact common man

Wholesale inflation has jumped to 9.68% in May 2026, as against 8.30% in April, data from Ministry of Commerce Industry showed on Monday, 15 June, 2026. Commerce ministry introduces revised base year series Before this, such high levels of rate of rise in wholesale prices were observed in September 2022, when the Wholesale Price Index (WPI) index-based inflation had rise by 10.70%. But the government used to calculate the metric based on base year of 2011-12. And the Centre changed it to 2022-23 for calculation of the inflation metric in May 2026. The reason for rising inflation is the increase in prices of daily necessities and fuel due to the past tensions between the US and Iran, which had run for three and a half months. Prices of daily necessities, fuel and power have increased Wholesale Inflation trend – last 14 months Impact of Wholesale Price Index (WPI) on common man When wholesale inflation remains elevated for a long time, it has a negative impact on most productive sectors. If wholesale prices remain at high levels for too long, producers pass on this burden to consumers. The government can control WPI only through taxes. For instance, in the situation of sharp increase in crude oil, the government had reduced excise duty on fuel. However, the government can reduce tax cuts only within a limit. WPI has higher weightage of factory-related goods like metals, chemicals, plastics, rubber. How is Inflation measured? There are two types of inflation in India. One is retail and the other is wholesale inflation. The retail inflation rate is based on prices paid by common consumers. This is also called the Consumer Price Index (CPI). On the other hand, the WPI refers to the prices that one trader charges another trader in the wholesale market. Retail inflation also on the rise in the country India’s retail inflation had also increased to 3.93% in May 2026.