India’s wholesale price inflation rose to 9.92% in August 2026, up from 9.78% in July, according to provisional government data. The increase keeps wholesale inflation above the 9% mark for the fourth consecutive month and shows continued pressure across fuel, food and manufactured products. The All Commodities Wholesale Price Index also increased to 110.8 in August from 110.0 in July.
Fuel and power remain the biggest pressure point
The Fuel and Power group recorded inflation of 22.93% in August, compared with 20.05% in July. Within the group, mineral oil prices rose 38.48% YoY, while crude petroleum and natural gas inflation increased to 34.41% from 26.99% in July. Coal and lignite also moved into positive inflation territory at 1.57%, compared with a decline of 0.56% in July.
The movement in energy prices remains important for manufacturing because fuel and power costs feed directly into production, transportation and processing expenses. For energy intensive industries such as steel, metals, chemicals and other heavy manufacturing sectors, sustained increases in these costs can affect the overall cost structure. The August data therefore continues to show significant pressure coming from the energy side of the wholesale economy.
Manufactured products inflation moves higher
Inflation in manufactured products increased to 8.37% in August from 8.29% in July. Although the month-on-month increase was relatively small, the manufactured products basket remains at a high level and accounts for the largest weight in the WPI. The manufacturing index increased to 108.8 from 108.4 during the month.
Several manufacturing categories recorded elevated inflation. Chemicals and chemical products rose to 14.30%, compared with 13.12% in July, while rubber and plastic products increased to 11.18% from 10.38%. Manufactured food products also accelerated to 9.65%, compared with 8.89% in July.
Basic metals remain under pressure, but inflation eases
For the metals industry, the basic metals category remains one of the important components of the wholesale inflation picture. Inflation in manufactured basic metals was 10.88% in August, although this was lower than the 12.56% recorded in July. The decline indicates some moderation in the rate of price increase compared with the previous month, even though the category continues to show double digit inflation.
This is relevant for steel and metal consuming industries because basic metals sit at the beginning of several downstream manufacturing chains. Changes in steel, non-ferrous metals and other industrial material costs can eventually influence fabricated products, machinery, construction-related products and automobile components.
Food inflation also moves higher
The WPI Food Index recorded inflation of 7.05% in August, compared with 6.65% in July. Food articles inflation increased to 5.67% from 5.44%, while manufactured food products rose to 9.65%. The Food Index has a weight of nearly 25% in the WPI basket, making its movement an important contributor to overall wholesale inflation.
The increase was therefore not limited to industrial inputs. Higher prices across food, energy and manufactured products resulted in a broad increase in wholesale price pressures during August.
Primary articles inflation moderates
Primary Articles was the only major WPI group among the three broad categories to show a meaningful moderation in August. Inflation declined to 7.76% from 8.52% in July, while the index increased to 118.1 from 117.2.
The movement is important because it shows that the increase in overall WPI was not driven uniformly across every major category. Instead, stronger inflation in Fuel and Power and a further rise in Manufactured Products more than offset the moderation seen in Primary Articles.
What it means for industry
The August WPI numbers point to continued cost pressure for Indian industry, particularly in sectors with high exposure to energy and industrial raw materials. Fuel and Power inflation above 22%, chemicals above 14% and basic metals above 10% indicate that input costs remain an important consideration for manufacturers. At the same time, the moderation in basic metals inflation and Primary Articles suggests that price pressure is not moving higher across every industrial category.
For steel and metals markets, the next few months will be important. The combination of energy costs, raw material prices, domestic demand and downstream consumption will determine how much of the wholesale cost pressure gets reflected in finished product prices. For now, the August data shows that wholesale inflation remains elevated, with manufacturing and energy costs continuing to play a major role.
Source note: Based on provisional Wholesale Price Index data for August 2026 released by the Government of India. Figures may be revised in subsequent WPI releases.