GS3 · Inflation

WPI inflation 9.92% and CPI inflation 4.82% in August 2026

Battle IAS current affairs title card: WPI inflation 9.92% and CPI inflation 4.82% in August 2026 (GS3 · Inflation, 14 September 2026)
Asked by UPSCPrelims 2020Mains 2024 (GS3)2 PYQs

UPSC has already asked about this. Read the story with these questions in mind.

Battle Brief

On 14 September 2026 the Government released price data for August 2026. Wholesale (WPI) inflation was 9.92 per cent, with fuel and power up 22.93 per cent. Retail (CPI) inflation, on the new base year 2024, was 4.82 per cent, and food inflation 5.95 per cent. Rural retail inflation (5.23 per cent) was higher than urban (4.31 per cent).

Fact File

Released
14 Sep 2026 (WPI: Commerce & Industry Ministry; CPI: NSO, MoSPI)
WPI inflation, Aug 2026
9.92% (July: 9.78%)
WPI base year
2022-23
CPI inflation, Aug 2026
4.82% (provisional)
CPI base year
2024=100
Food inflation (CFPI)
5.95%
In the news

WPI and CPI inflation for August 2026: what happened?

India tracks prices at two levels. The WPI measures prices at the wholesale stage; the CPI measures what households pay in the shops. In August 2026 the gap between them was wide: wholesale inflation near 10 per cent, retail under 5 per cent.

  • WPI inflation for August 2026: 9.92 per cent year on year, against 9.78 per cent in July.
  • WPI major groups: primary articles 7.76 per cent, fuel and power 22.93 per cent, manufactured products 8.37 per cent.
  • WPI food index inflation: 7.05 per cent.
  • CPI (combined) inflation: 4.82 per cent; rural 5.23 per cent, urban 4.31 per cent.
  • Consumer Food Price Index inflation: 5.95 per cent.
Back Story

How are WPI and CPI different?

PointWPICPI
Measureswholesale pricesretail prices paid by households
Base year (current series)2022-232024
Released byMinistry of Commerce & IndustryNSO, MoSPI
Rural/urban splitnoyes: rural, urban, combined
Covers servicesnoyes, e.g. education, health, transport
Back Story

Which items moved the most in CPI?

  • High inflation: silver jewellery 107.11 per cent, ginger 73.82 per cent, onion 48.27 per cent, garlic 43.60 per cent.
  • Falling prices: tomato minus 31.09 per cent, potato minus 13.14 per cent.
  • Among divisions, personal care and miscellaneous goods and services rose 15.17 per cent, and restaurants and accommodation 8.38 per cent.
By the numbers

What do the numbers show?

Inflation, year on year (%)
MeasureJuly 2026August 2026
WPI, all commodities9.789.92
WPI, primary articles8.527.76
WPI, fuel and power20.0522.93
WPI, manufactured products8.298.37
CPI, combined4.454.82
CPI, rural4.845.23
CPI, urban3.964.31
CFPI (food), combined5.525.95

July CPI final; August provisional. Source: PIB, 14 Sep 2026.

How it works

How does wholesale inflation reach the shop?

  1. Fuel and power prices rise at the wholesale stage (22.93% in August)
  2. Transport and production costs go up for firms
  3. Firms may pass costs to retail prices over time
  4. Households see it in CPI items such as transport
Why examiners care

Why does WPI and CPI inflation for August 2026 matter?

AngleWhat to note
HouseholdsCPI is what families actually pay; 4.82 per cent is the figure they feel.
FuelMineral oils drove WPI; fuel prices feed into almost every good.
Rural householdsRural retail inflation is higher than urban, which hurts poorer families more.
FoodOnion, garlic and ginger prices rose sharply while tomato and potato fell.
IndustryHigh wholesale inflation squeezes firms’ margins.
Fault Lines

What are the challenges in WPI and CPI inflation for August 2026?

  • Wholesale inflation near 10 per cent can pass on to retail prices over the coming months.
  • Fuel and power inflation (22.93 per cent) is hard to control at home.
  • August figures are provisional; the WPI response rate was 84.4 per cent.
  • Swings in vegetable prices make food inflation volatile.
Road Ahead

What should be done next on WPI and CPI inflation for August 2026?

  • Watch whether high wholesale fuel prices pass through to CPI.
  • Keep supply steady for onion, garlic and other volatile items.
  • Read the new CPI (base 2024) series carefully when comparing with older years.
Exam Radar

What can Prelims ask on WPI and CPI inflation for August 2026?

  • WPI base year: 2022-23; CPI base year: 2024.
  • August 2026: WPI 9.92%, CPI 4.82%, CFPI 5.95%.
  • WPI is released on the 14th of the next month (or next working day).
  • CPI price data: 1407 urban markets and 1465 villages.
  • CPI has rural, urban and combined series; WPI does not.
Answer Lab

How to write about WPI and CPI inflation for August 2026 in Mains

Practice question (15 marks, 250 words): Why can wholesale and retail inflation diverge sharply? Explain with reference to August 2026 data and discuss the policy implications.

  • Intro: WPI 9.92%, CPI 4.82% in August 2026.
  • Why they differ: baskets, weights, services in CPI, fuel weight in WPI.
  • Drivers: fuel and power 22.93%; vegetables mixed.
  • Implications: pass-through risk, firm margins, rural households.
  • Way forward: supply management, monitor pass-through.

How to use this in Mains

GS-III Indian economy: growth, development and macro stability

  1. As per PIB (2026-09-14): WPI (base 2022-23) inflation was 9.92% in August 2026 (9.78% in July); fuel and power at 22.93%.
  2. A wide WPI–CPI gap signals cost pressure on producers that may pass through to retail prices.
Quotable data point

CPI (base 2024=100) inflation was 4.82%; food inflation (CFPI) 5.95%; rural 5.23%, urban 4.31%.

PIB: Commerce: WPI for August 2026, 14 Sep 2026

Exam angle

UPSC

Prelims: base years and compilers of WPI/CPI. · Mains: Why WPI and CPI diverge.

Practice MCQs

Original practice questions (not PYQs).

Practice · UPSC

The current CPI series released in 2026 has the base year

Answer (c) & explanation

PIB, 14 Sep 2026: CPI on base 2024=100.

Practice · UPSC

In August 2026, which WPI major group had the highest inflation?

Answer (b) & explanation

PIB, 14 Sep 2026: fuel and power 22.93 per cent.

Practice · UPSC

Consider: 1. CPI is released separately for rural and urban areas. 2. WPI includes prices of services. Which is/are correct?

Answer (a) & explanation

PIB, 14 Sep 2026: CPI gives rural, urban and combined figures; WPI covers primary articles, fuel and power, and manufactured products.

Quick questions

Questions students ask about this

What was WPI inflation in August 2026?

9.92 per cent year on year, up from 9.78 per cent in July 2026.

What was retail inflation in August 2026?

4.82 per cent (provisional), on the CPI with base year 2024.

Why was WPI so high?

Mainly fuel and power (22.93 per cent), with mineral oils, food articles and food products as major drivers.

Who releases CPI and WPI?

CPI by the NSO, MoSPI; WPI by the Ministry of Commerce & Industry.

Keep studying

Go deeper

Official source: PIB: Commerce: WPI for August 2026, 14 Sep 2026

facts from cited sources only; faculty review pending