Page 23 - Policy & Economic Report - July 2025

POLICY AND ECONOMIC
ROEILPO&RGTAS MARKET

Division-wise inflation across the remaining expenditure categories revealed significant variation in price
movements. Personal Care, Social Protection and Miscellaneous Goods & Services recorded the highest
inflation at 16.72 per cent, followed by Restaurants and Accommodation Services (6.91 per cent), Food &
Beverages (5.05 per cent) and Paan, Tobacco and Intoxicants (4.83 per cent). Inflation also remained
elevated in Transport (4.31 per cent), reflecting higher mobility-related costs, while Education Services
(3.34 per cent) and Clothing and Footwear (3.23 per cent) registered moderate price increases.

In contrast, inflation remained relatively subdued in Furnishings, Household Equipment and Routine
Household Maintenance (2.19 per cent), Housing, Water, Electricity, Gas and Other Fuels (1.99 per
cent), Recreation, Sport and Culture (1.75 per cent), Health (1.42 per cent) and Information and
Communication (0.43 per cent), indicating that inflationary pressures remained uneven across
expenditure categories.
Wholesale Prices and Producer Price Indices (Base Year: 2022-23)

Wholesale price inflation in India remained elevated during June 2026, reflecting sustained cost pressures
across the production chain, particularly from fuel, energy and manufactured products. The Wholesale
Price Index (WPI) inflation increased marginally to 9.87 per cent (year-on-year) in June 2026 from 9.68 per
cent in May 2026. The rise in wholesale inflation was primarily driven by higher prices of mineral oils
(including petroleum products), food articles, basic metals, and chemicals and chemical products, while
the WPI Food Index also recorded a notable acceleration during the month.

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

Source: Ministry of Commerce & Industry

Among the major commodity groups, Fuel and Power continued to register the highest inflation at 27.41
per cent, although it moderated from 30.33 per cent in May 2026. Inflation in Primary Articles accelerated
to 7.00 per cent from 4.99 per cent, reflecting higher prices of food articles and minerals. Meanwhile,
inflation in Manufactured Products remained unchanged at 7.48 per cent, indicating that cost pressures
across the manufacturing sector continued to persist despite some moderation in energy prices. The WPI

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