Page 25 - Policy Economic Report -August 2026

POLICY AND ECONOMIC
OIL & GAS MARKET

Wholesale Prices and Producer Price Indices (Base Year: 2022-23)

Wholesale price pressures remained elevated in July 2026, although headline WPI inflation moderated
marginally from the previous month. According to the Ministry of Commerce & Industry, India's Wholesale
Price Index (WPI) inflation stood at 9.78 per cent in July 2026, compared with 9.87 per cent in June 2026.
The moderation was primarily supported by a decline in fuel and power inflation, while price pressures
across primary articles and manufactured products strengthened during the month. The All Commodities
WPI index stood at 110.0 in July, marginally lower than 110.2 in June.

Inflation across the major WPI groups remained uneven. Primary Articles inflation increased to 8.52 per
cent in July from 7.0 per cent in June, while inflation in Manufactured Products rose to 8.29 per cent from
7.48 per cent. In contrast, Fuel and Power inflation declined sharply to 20.05 per cent from 27.41 per
cent in June. Within the fuel and power category, mineral oils remained a significant source of price
pressure, although inflation moderated to 32.40 per cent from 46.48 per cent, while crude petroleum and
natural gas inflation declined to 26.99 per cent from 34.75 per cent. Electricity inflation, however, moved
into positive territory at 1.09 per cent compared with a deflation of 0.76 per cent in June.

Figure 10: Wholesale Price Index (WPI) and Inflation Rate (July 2025 – July 2026)

Source: Ministry of Commerce & Industry

The food-related price environment also remained an important contributor to wholesale inflation. The
WPI Food Index, which combines food articles under Primary Articles and manufactured food products,
recorded inflation of 6.65 per cent in July, up from 6.14 per cent in June. Among the major drivers of
overall WPI inflation were mineral oils, food articles, basic metals, non-food articles, manufactured food
products, and chemicals and chemical products.

Within manufactured products, price pressures strengthened across several industrial categories.
Inflation in manufacture of food products increased to 8.89 per cent, while textiles rose to 12.80 per cent.
Inflation in chemicals and chemical products stood at 13.12 per cent, while basic metals recorded 12.56

August 2026 Page | 24