Big Price Shock for Indians: Wholesale Prices Surge to 9.92%

NEW DELHI, Sept 14: India’s wholesale price-based inflation rose to 9.92% in August from 9.78% in July, driven by higher prices of food, manufactured products, and fuel and power, government data showed Monday.

Inflation in the food index increased to 7.05% in August from 6.65% in July, while inflation in manufactured products rose to a series high of 8.37%, compared with 8.29% the previous month. Inflation in the fuel and power basket stood at 22.93%.

The Commerce and Industry Ministry said mineral oils, food articles, manufactured food products, basic metals, non-food articles, and chemicals and chemical products were among the major drivers of wholesale inflation in August.

Wholesale inflation has been rising since the beginning of the current fiscal year, with the government citing higher global crude oil and fertiliser costs linked to the West Asia war and the resulting disruption around the Strait of Hormuz. The higher input costs have also had a spillover effect on food prices.

The Reserve Bank of India’s Monetary Policy Committee last month kept benchmark interest rates unchanged at 5.25%. The central bank has projected retail inflation at 5% for the 2026-27 financial year, citing deficient and uneven southwest monsoon rainfall amid El Niño conditions.