Page 26 - Policy Economic Report -August 2026

POLICY AND ECONOMIC
OIL & GAS MARKET

per cent. Manufactured electrical equipment and rubber and plastic products also recorded relatively high
inflation of 12.34 per cent and 10.38 per cent, respectively. These movements indicate that wholesale
price pressures continued to be transmitted across a range of manufacturing inputs and intermediate
goods.

On a cumulative basis, wholesale price inflation remained considerably higher during the first four months
of FY 2026–27. Cumulative WPI inflation for April–July 2026–27 stood at 9.47 per cent, compared with -
0.20 per cent during the corresponding period of FY 2025–26. Fuel and Power recorded the highest
cumulative inflation at 25.80 per cent, followed by Primary Articles at 6.19 per cent and Manufactured
Products at 7.48 per cent. Within Fuel and Power, mineral oils and crude petroleum and natural gas
recorded particularly high cumulative inflation of 42.40 per cent and 44.62 per cent, respectively.

Figure 11: Inflation across Major Commodity Groups (%)

Source: Ministry of Commerce & Industry

Producer Price Indices

The newly released Output Producer Price Index (Output PPI) remained unchanged in July 2026, with the
All India Output PPI for all commodities standing at 109.9, the same as in June. At the sectoral level, the
Output PPI for Agriculture, Forestry and Fishing increased to 115.6 from 114.1, while the index for Mining
and Quarrying declined to 119.4 from 121.5. The index for Manufactured Products also declined
marginally to 108.8 from 109.2, whereas Electricity increased to 92.4 from 92.0.

The Trial Input Producer Price Index (IPPI) for the manufacturing sector stood at 105.9 in July 2026,
compared with 107.1 in June. The decline suggests some moderation in aggregate input-price pressures
faced by manufacturers during the month. However, movements remained varied across individual
industries, with input prices increasing in areas such as food products, beverages, tobacco and several
metal-related activities, while notable declines were recorded in coke and refined petroleum products
and textiles.

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