India’s wholesale inflation rises to a 44-month high:Climbs to 9.87% in June; food items get costlier, fuel cheaper

Wholesale inflation has jumped to 9.87% in June 2026, as against 9.68% in May, data from Ministry of Commerce Industry showed on Tuesday, 14 July, 2026. Inflation in June is the highest in 44 months. In September 2022, it had reached 10.70%. The reason for rising inflation is that daily necessities and food items such as grains and vegetables have also become expensive. Actually, there has been tension between the US and Iran since February. If the situation does not normalise, inflation may increase further. Prices of daily necessities have increased Wholesale Inflation Trajectory in 2026 Components of Wholesale Inflation Primary Articles has a weightage of 22.62%. Fuel and Power has a weightage of 13.15% and Manufactured Products has the highest weightage of 64.23%. Primary Articles also has four sub-components: Impact of Wholesale Price Index (WPI) on Common Man When wholesale inflation remains high for a long time, it has a negative impact on most productive sectors. If wholesale prices remain at elevated levels for too long, producers pass on this burden to consumers. The government can control WPI only through taxes. For instance, in a 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). Whereas, the Wholesale Price Index (WPI) refers to the prices that one trader charges another trader in the wholesale market. Different items are included to measure inflation. For example, in wholesale inflation, the share of manufactured products is 63.75%, primary articles like food is 22.62%, and fuel and power is 13.15%. Whereas, in retail inflation, the share of food and products is 45.86%, housing is 10.07%, and there is also a share of other items including fuel.