WPI inflation rises to 11.4% in September

Wholesale price index (WPI) inflation in India rose to 11.39% in September, the highest in the current series with prices rising across the board, data released by the commerce ministry on Wednesday showed.

The rise in wholesale inflation in September, from 9.92% in August, exceeded expectations. Most economists expected WPI inflation to rise around 10-11% in September.

Inflation across different metrics is rising with retail inflation, as measured by the Consumer Price Index (CPI), hitting to a 23-month high of 5.54% in September.

Output Producer Price Index (PPI) inflation also rose to a series high of 11.39% in September from 9.81% in the previous month. The trial input PPI for the manufacturing sector rose 1.8% month-on-month to 106.1 in September from 104.2 in August.

WPI inflation has averaged 9.85% during April-September, sharply higher than -0.2% in the corresponding period a year ago.

With rising food inflation and high global energy and commodity prices, economists expect WPI inflation to stay in double digits for the next few months. ICRA and India Ratings and Research both seen WPI inflation rising to around 12% in October.

In September, fuel and power recorded the highest inflation at 25.85%, up from 22.93% in August. Manufactured products inflation rose to 9.76% last month from 8.37% in August, while primary articles increased to 8.67% from 7.76% in August.

Core WPI inflation, which excludes food and fuel items, jumped to a series high of 9.8% in September from 8.1% in August.

"Core WPI accounted for more than half of the 147 basis points uptick in the headline inflation print in September relative to August, reflecting the impact of the passthrough of input cost pressures," said Rahul Agrawal, principal economist at ICRA.

WPI food inflation rose to a 23-month high of 8.66% in September from 7.05% in August. The rise in wholesale food inflation was led by cereals, vegetables, fruits, pulses, and edible oils

"While the sequential pace of hardening in food prices has softened in October 2026 so far relative to that seen in September, an adverse base would push up food inflation further in the ongoing month," Agrawal said.

Wholesale fuel and power inflation was pushed higher by a rise in petrol, aviation fuel, high speed diesel, crude petroleum, and natural gas.

Inflation in manufactured products rose, suggesting a gradual pass-through of higher input costs, economists said.

"Double digit inflation in seven manufacturing sectors - tobacco products, textiles product, chemical products, rubber & plastic products, base metals, electrical equipment, and other manufacturing pushed manufactured inflation to all time high (in new series)," said Devendra Pant, chief economist, India Ratings and Research.