PR No – 164
14th Aug 2026
New Delhi
“WPI Inflation (Y-o-Y, provisional) estimated at 9.78% in July, 2026, signalling continued cost pressures on wholesalers due to international supply chain disruptions, says PHDCCI”
The Y-o-Y Wholesale Price Index (WPI) inflation rate reached 9.78% in July, 2026. It has reduced by 9 basis points (BPS) compared to 9.87% in June, 2026. This slight decrease is driven by a significant decline in Fuel and Power inflation rates, which dropped to 20.05% in July, 2026 from 27.41% in June, 2026.
The manufacturing sector continues to play a significant role in increasing wholesale prices. The WPI inflation rate for Manufacturing was 8.29% in July, 2026. Primarily driven by high inflation in Manufacture of chemical and chemical products (13.12%), the sector continues to feel the strain of low availability of crude oil as feedstock.
While the manufacturing sector continues to navigate through high input costs, the neutral stance of the recent Monetary Policy will support manufacturers by allowing for loans at stable interest rates, said Mr. Rajeev Juneja, President, PHDCCI
Simultaneously, high inflation rates in Manufacturing of basic metals (12.56%) and Manufacturing of electrical equipment (12.34%) further added to the high manufacturing sector inflation rates. The wholesale prices of these goods have increased due to increase in demand of renewable energy devices and components thereof.
The Primary Articles group recorded an inflation of 8.52% in July 2026 over July 2025. The WPI inflation for food articles within the Primary articles group was 5.44% in July, 2026. Southwestern monsoon predictions being less than 94% of the Long Period Average have resulted in farmers anticipating lower production. This has led to marking up of current stock prices, further increasing prices of downstream products, marked by an 8.89% inflation rate of Manufacturing of food products in July, 2026.
Overall, the immediate outlook is one of elevated but potentially moderating wholesale inflation. The key risks are renewed increases in global crude and commodity prices, persistence of metal and chemical price pressures, and weather-related food supply disruptions. Conversely, easing energy costs, improved domestic supply conditions and moderation in input prices could support a gradual decline in WPI inflation, said Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI.