Wholesale inflation hits 11.4% as food, fuel prices rise

NEW DELHI India’s wholesale price inflation surged to 11.4 per cent in September 2026, reaching its highest level since the current Wholesale Price Index (WPI) series began in April 2024. Under the older series, the inflation rate marked a 49-month high, highlighting mounting pressure from rising food and fuel costs. The latest increase continues an upward trend in wholesale prices, driven by higher global crude oil and fertiliser costs. Disruptions linked to the West Asia conflict and the reported blockade of the Strait of Hormuz, a key route for crude oil shipments, have added to pressure on commodity prices. Higher fuel and fertiliser costs have also affected food prices, contributing to broader inflation across commodities. The impact is significant for India because the country relies heavily on imported crude oil to meet its energy needs. The current WPI series uses 2022-23 as its base year and contains data from April 2024 onwards. The older series, based on 2011-12, provides a longer historical comparison. September’s inflation rate is the highest recorded in the new series and the highest since August 2022 under the previous series. The sharp rise in wholesale inflation signals increased cost pressures for businesses, particularly those dependent on fuel, transport, agricultural inputs and raw materials. Sustained increases in these costs could also affect prices across supply chains, although the extent of any impact on retail inflation will depend on how businesses pass on higher expenses to consumers.