WPI inflation rises to 11.39% in September on higher food, fuel prices

WPI inflation has risen since the start of the fiscal year, driven by the West Asia war and the Strait of Hormuz blockade, which pushed up global crude oil and fertiliser costs, spilling over into food and commodity prices

India's wholesale price index (WPI)-based inflation rose to 11.39 per cent in September from 9.92 per cent in August, driven by higher prices of food, manufactured items, and fuel and power, according to government data released on Wednesday.

Inflation in the food index increased to 8.66 per cent in September from 7.05 per cent in the previous month. In manufactured items, WPI inflation touched a series high of 9.76 per cent, up from 8.37 per cent in August.

Inflation in the fuel and power basket also accelerated to 25.85 per cent in September from 22.93 per cent in August.

The Commerce and Industry Ministry said mineral oils (containing petroleum products), food articles, crude petroleum and natural gas, coal and lignite, manufacture of basic metals, chemicals and chemical products, textiles, rubber and plastic products, and electrical equipments were among the drivers of WPI inflation in September 2026.

WPI inflation has been on an upward trajectory since the beginning of the current fiscal year, with the West Asia war and the resultant blockade of the Strait of Hormuz pushing up global crude oil and fertiliser costs, with a spillover effect on food and commodity prices. The strait is a key route through which the majority of India's crude oil imports pass.

The Reserve Bank of India's monetary policy committee last week raised the benchmark policy rate by 25 basis points to 5.50 per cent.

Separately, retail inflation rose to a 23-month high of 5.54 per cent in September from 4.83 per cent in August, according to data released earlier this week. The increase was driven by a sharp rise in food prices.