India Wholesale Inflation Rises to 9.87 Percent in June

India's wholesale price index (WPI) inflation rose to 9.87 percent year-on-year in June 2026, up from 9.68 percent in May. Data from the Ministry of Commerce and Industry shows the acceleration was driven by spikes in fuel and power, which surged 27.41 percent, as well as manufactured products and primary articles. Specific pressures emerged from mineral oils, crude petroleum, natural gas, chemicals, and basic metals.

Retail inflation also increased, with the consumer price index rising to 4.38 percent in June from 3.93 percent in May. In response to these trends, the Reserve Bank of India raised its inflation forecast for the current fiscal year to 5.1 percent from 4.6 percent. Minister of State for Finance Pankaj Chaudhary informed the Lok Sabha that the government is mitigating these pressures by augmenting buffer stocks for essential food, calibrating trade policies, and selling procured grains in the open market.

The government maintains a long-term CPI inflation target of 4 percent, with a tolerance band of 2 to 6 percent through March 31, 2031. Industry leaders from the PHD Chamber of Commerce and Industry warned that persistent wholesale price increases in upstream industries could pass through to consumer prices unless offset by productivity gains.