India WPI Inflation Eases To 9.78% In July

India's wholesale price inflation (WPI) eased marginally to 9.78% in July 2026, compared to 9.87% in June, according to provisional data released by the Ministry of Commerce and Industry.

The Wholesale Price Index for all commodities stood at 110.0 in July, against 110.2 in June. Among the major groups, inflation in primary articles increased to 8.52% from 7% in June, while manufactured products inflation rose to 8.29% from 7.48%.

Fuel and power inflation, however, eased sharply to 20.05% from 27.41%. The ministry said mineral oils, food articles, basic metals, non-food articles, food products, and chemicals were among the key contributors to July's WPI inflation.

The WPI Food Index, which combines food articles under primary articles with manufactured food products, rose to 6.65% in July from 6.14% in June. Food articles inflation within primary articles remained broadly stable at 5.44%, compared with 5.49% previously.

Non-food articles inflation climbed to 17.66% from 11.07%, while minerals inflation increased to 13.28% from 9.45%. Within fuel and power, mineral oils inflation declined to 32.4% from 46.48%, while crude petroleum and natural gas inflation moderated to 26.99% from 34.75%.

Electricity inflation turned positive at 1.09%, compared with a contraction of 0.76% in June. Manufactured food products inflation increased to 8.89% from 7.2%. Textile inflation rose to 12.8%, while basic metals inflation edged up to 12.56%.

Chemicals and chemical products inflation also increased to 13.12%. The ministry revised May's final WPI inflation to 9.88% from the earlier provisional estimate of 9.68%. The final May index was revised to 110.1 from 109.9.

The provisional July estimate was based on a weighted response rate of 78.55%, compared with 98.14% for the final May estimate. The marginal easing of WPI inflation is a positive sign for the Indian economy, as it may help in controlling price rise and promoting economic growth.

However, the rise in food inflation and manufactured products inflation may be a cause of concern, as it could impact consumer spending and overall economic activity. The government and the Reserve Bank of India will closely monitor the inflation trends to take necessary policy decisions.

The WPI inflation data is closely watched by policymakers, as it provides an indication of the price trends in the economy. The data is also used to adjust the prices of goods and services, and to make informed decisions about monetary policy.

In conclusion, the marginal easing of WPI inflation in July is a welcome sign, but the rise in food and manufactured products inflation requires close monitoring. The government and the RBI will need to take necessary steps to control inflation and promote economic growth.