WPI (provisional) based inflation for June 2026 further jumps to 9.87 per cent year-on-year on high base, says PHDCCI
New Delhi : According to the provisional estimates, wholesale price inflation under the new base year stood at year-on-year 9.87% in June 2026, compared with 9.68% in May 2026. Fuel and Power recorded the highest inflation among major groups at 27.41%, followed by Manufactured Products at 7.48% and Primary Articles at 7%. The increase was largely driven by mineral oils, crude petroleum and natural gas, chemicals and chemical products, and basic metals.
“Rise in energy, petrochemicals and metals points to renewed cost-push inflation with broad-based acceleration with inflation in Fuel and Power increasing to 27.41%, Manufactured Products to 7.48%, and Primary Articles to 7%. Persistent increases in wholesale prices, particularly in upstream industries, could gradually pass through to downstream manufacturing and consumer prices with a lag unless offset by productivity gains or lower input costs” said Mr. Rajeev Juneja, President PHDCCI.
“Higher prices of petroleum products primarily reflect increased crude oil inventory and refining costs. Since petroleum products constitute a major input for freight transportation, logistics, aviation, power generation and industrial production, sustained increases are expected to raise operating costs across multiple sectors”, he added.
The revised WPI basket has been expanded from 697 to 957 items, incorporating emerging sectors and improving the representation of the evolving structure of the Indian economy. The new series also adopts Gross Value of Output (GVO) as the basis for weights, introduces improved methods for index compilation and missing data imputation, and reorganises the energy basket by placing crude petroleum and natural gas under the Fuel and Power group. Renewable energy sources, including solar and wind, as well as nuclear electricity, have also been incorporated into the index.
Introduction of the revised Wholesale Price Index (WPI) series with base year 2022-23 along with the launch of Output Producer Price Index (OPPI), Trial Input Producer Price Index (IPPI) and Service Producer Price Indices (Service PPIs) is a welcome move, he added.
The chemical industry has experienced rising prices owing to higher feedstock costs linked to crude oil and natural gas, increased prices of imported intermediates and stronger demand from pharmaceuticals, construction materials, automobiles and consumer goods industries.
Food inflation at the wholesale level (5.49% YoY) has increased, reflecting higher prices of processed food products and selected agricultural commodities. However, food price pressures remain considerably lower than energy-related inflation.
“The latest wholesale inflation data indicate that energy and commodity prices continue to be the principal drivers of producer inflation, due to persistent geopolitical challenges, will put pressures on corporate margins in the short term”, said Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI.
