Page 27 - Policy Economic Report - September 2026

POLICY AND ECONOMIC
OIL & GAS MARKET

Food-related wholesale price pressures also strengthened. The WPI Food Index, which accounts for
24.99% of the WPI basket and combines food articles with manufactured food products, recorded
inflation of 7.05% in August, up from 6.65% in July. Within manufactured products, inflation in food
products increased to 9.65%, while basic metals and chemicals recorded inflation of 10.88% and 14.30%,
respectively.

Figure 11: Inflation across Major Commodity Groups (%)

Source: Ministry of Commerce & Industry

Producer Price Indices

The newly introduced Output Producer Price Index (Output PPI) provides an additional measure of price
movements from the producer's perspective. The All-India Output PPI for All Commodities increased
from 109.9 in July to 110.8 in August 2026. At the sectoral level, the index for Agriculture, Forestry and
Fishing increased from 115.6 to 116.5, while Mining and Quarrying rose from 119.4 to 122.0. The index
for Manufactured Products increased from 108.8 to 109.7, whereas the index for electricity declined from
92.4 to 90.9.

The sectoral movement in Output PPI indicates that producer-level prices remained firm across
agriculture, mining and manufacturing during August. Within manufacturing, the output price index
for food products increased to 117.6, while indices for electrical equipment, machinery and motor
vehicles also remained higher than their July levels. The index for extraction of crude petroleum and
natural gas increased from 108.9 to 116.3, reflecting continued volatility in energy-related producer
prices.

The Trial Input Producer Price Index (IPPI) complements the Output PPI by tracking price movements
faced by producers for production inputs. The latest available trial IPPI data in the source series showed
the manufacturing-sector index at 105.9 in July 2026, down from 107.1 in June, indicating some
moderation in aggregate input-price pressures during the month.

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