WPI inflation 9.78% in July 2026
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UPSC has already asked about this. Read the story with these questions in mind.
Wholesale Price Index inflation for July 2026 was 9.78 per cent, slightly below 9.87 per cent in June, the Commerce Ministry said on 14 August 2026. Fuel and power inflation cooled to 20.05 per cent from 27.41 per cent, but primary articles rose to 8.52 per cent and manufactured products to 8.29 per cent.
- Released
- 14 Aug 2026, Office of the Economic Adviser, DPIIT
- Base year
- 2022-23
- WPI inflation
- 9.78% (June: 9.87%)
- Fuel and power
- 20.05% (June: 27.41%)
- Primary articles
- 8.52% (June: 7.0%)
- Food Index
- 6.65% (June: 6.14%)
WPI inflation for July 2026: what happened?
WPI tracks prices at the wholesale or factory gate level. It moves faster than retail prices because it carries more fuel and raw materials. Since March 2026, mineral oil prices have pushed WPI up sharply. July shows the first signs of fuel cooling, while food and manufactured goods kept rising.
- The all-commodities index fell slightly to 110.0 from 110.2 in June.
- Main drivers: mineral oils, food articles, basic metals, non-food articles, food products and chemicals.
- Mineral oils inflation fell to 32.4% from 46.48%.
- Non-food articles jumped to 17.66% from 11.07%.
- May 2026 WPI inflation was revised up from 9.68% (provisional) to 9.88% (final).
What is WPI and who compiles it?
- WPI is compiled by the Office of the Economic Adviser, DPIIT, Ministry of Commerce and Industry.
- The current base year is 2022-23.
- It has three major groups: primary articles, fuel and power, and manufactured products.
- Manufactured products carry the largest weight, about 63%.
- Provisional WPI is released on the 14th of the following month; the August 2026 figure is due on 14 September 2026.
What do the numbers show?
| Group (weight %) | Feb 2026 | Apr 2026 | Jun 2026 | Jul 2026 |
|---|---|---|---|---|
| All commodities (100) | 2.18% | 8.36% | 9.87% | 9.78% |
| Primary articles (22.76) | 1.64% | 3.96% | 7.0% | 8.52% |
| Fuel and power (14.11) | -3.37% | 25.00% | 27.41% | 20.05% |
| Mineral oils (8.19) | -4.35% | 40.74% | 46.48% | 32.4% |
| Manufactured products (63.13) | 3.61% | 6.68% | 7.48% | 8.29% |
| Food Index (24.99) | – | – | 6.14% | 6.65% |
How does a fuel shock pass through WPI?
- Crude and mineral oil prices rise
- Fuel and power index jumps first
- Costs of transport, chemicals and metals rise
- Manufactured product prices follow
- Some of it reaches retail (CPI) later
Why does WPI inflation for July 2026 matter?
| Angle | What to note |
|---|---|
| Monetary policy | RBI targets CPI, but high WPI warns of cost pressure building up. |
| WPI-CPI gap | WPI at 9.78% is far above CPI at 4.45% (July 2026), so firms are absorbing costs for now. |
| Industry | Input costs for chemicals and textiles are rising fast. |
| Farmers and food | Food Index rose to 6.65%; non-food articles to 17.66%. |
| Fiscal | Higher fuel costs can raise the subsidy bill. |
What are the challenges in WPI inflation for July 2026?
- WPI has stayed near 10% since May 2026.
- Inflation has spread from fuel to manufactured products.
- The July provisional figure uses a weighted response rate of 78.55%, so revisions are likely (May was revised up).
- A large WPI-CPI gap may close later through higher retail prices.
What should be done next on WPI inflation for July 2026?
- Watch whether fuel prices keep falling in August.
- Track pass-through of input costs to retail prices.
- Use targeted relief for sectors hit by input costs rather than broad cuts.
What can Prelims ask on WPI inflation for July 2026?
- WPI: compiled by the Office of the Economic Adviser, DPIIT; base 2022-23.
- Largest weight in WPI: manufactured products (about 63%).
- Food Index weight: about 25%.
- July 2026 WPI inflation: 9.78%.
How to write about WPI inflation for July 2026 in Mains
Practice question (10 marks, 150 words): Why can wholesale and retail inflation diverge sharply? Explain with reference to the WPI-CPI gap in mid-2026 and its implications for monetary policy.
- Intro: WPI 9.78% vs CPI 4.45%, July 2026.
- Different baskets and weights: fuel and raw materials in WPI, services in CPI.
- Fuel shock and pass-through.
- Implications for RBI and firms’ margins.
- Conclusion: watch pass-through.
How to use this in Mains
- As per PIB (2026-08-14): WPI inflation (base 2022-23) for July 2026 was 9.78% y-o-y.
- When WPI runs far above CPI, producers are absorbing cost pressure that may pass on later.
Quotable data pointWPI inflation (base 2022-23) for July 2026 was 9.78% y-o-y.
PIB: Commerce: WPI July 2026, 14 Aug 2026
Exam angle
Prelims: WPI vs CPI.
Practice MCQs
Original practice questions (not PYQs).
With reference to the Wholesale Price Index (base 2022-23), which major group has the highest weight?
Answer (c) & explanation
PIB (Commerce), 14 Aug 2026: manufactured products weight 63.13.
In July 2026, which WPI group showed a fall in year-on-year inflation compared with June 2026?
Answer (b) & explanation
PIB (Commerce), 14 Aug 2026: 27.41% to 20.05%.
Questions students ask about this
What was WPI inflation in July 2026?
9.78 per cent year-on-year, down from 9.87 per cent in June 2026.
Who releases WPI?
The Office of the Economic Adviser, DPIIT, Ministry of Commerce and Industry.
Which WPI group has the largest weight?
Manufactured products, with about 63 per cent weight.
What is the base year of WPI now?
2022-23.
Keep studying
Go deeper
Official source: PIB: Commerce: WPI July 2026, 14 Aug 2026
facts from cited sources only; faculty review pending