The Wholesale Price Index (WPI) for all commodities in August 2026 has been reported at 110.8, reflecting an annual inflation rate of 9.92 per cent when compared to the same month last year. This marks a slight increase from July 2026, where the annual WPI inflation was recorded at 9.78 per cent. According to data from the Ministry of Commerce & Industry, the index has escalated from the previous month’s reading of 110.0.

The rise in wholesale price inflation is attributed primarily to increasing price pressures in significant industrial and energy categories. Notably, fuel and power sectors experienced a substantial jump, with inflation reaching 22.93 per cent in August, compared to 20.05 per cent in July.

Commodities Contributing to Inflation

Despite the overall inflation rise, certain segments have shown a decrease. For instance, inflation for primary articles declined to 7.76 per cent in August from 8.52 per cent in the previous month. Manufactured products also saw a minor increase, with inflation moving up to 8.37 per cent from 8.29 per cent.

The official report indicated that several commodity categories notably influenced WPI fluctuations during August 2026. Key contributors included ‘Mineral Oils (including Petroleum Products)’, ‘Food Articles’, ‘Manufacture of Food Products’, ‘Manufacture of Basic Metals’, ‘Non-Food Articles’, and ‘Manufacture of Chemicals and Chemical Products’. These elements played a significant role in driving the inflation figures higher.

Additionally, food-related pressures also saw a rise in inflation during this period. The WPI Food Index, which encompasses a total weight of 24.99 per cent consisting of both primary and manufactured food goods, reported an annual inflation rate of 7.05 per cent in August 2026, up from 6.65 per cent in July.

Producer Price Index Highlights

Alongside the wholesale data, the ministry also shared important insights from the Producer Price Index (PPI), which is based on a 2022-23 financial year base year. The all-India Output PPI for all commodities reached 110.8 in August 2026, an increase from 109.9 in July 2026.

Sector-specific output figures presented a mixed picture. The Output PPI for agriculture, forestry, and fishing rose to 116.5, from 115.6 in July. In contrast, the mining and quarrying sector exhibited growth, moving to 122.0 from 119.4. The manufacturing domain also saw an enhancement, as it stood at 109.7 against 108.8 in the previous month.

However, the electricity sector experienced a downturn, with the output index declining to 90.9 in August from 92.4 in July. This represents a notable contraction in the sector, contributing to the mixed sectoral performance within the economy during this period.

Input Price Trends

On the input side, preliminary estimates for the Input Producer Price Index for the manufacturing sector indicated an August 2026 reading of 104.2. Furthermore, the ministry revised its earlier estimates, revealing that the final index for the manufacturing sector for June 2026 was adjusted to 105.9, reduced from an initial provisional estimate of 107.1.

These adjustments reflect the ongoing fluctuations in the manufacturing sector which play a critical role in the overall economy. Monitoring these figures is vital for understanding broader economic trends and the potential impact on consumer prices in the future.

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