NEW DELHI: Inflation is rising in the country and data from the Ministry of Commerce and Industry indicate that reveal a higher jump in WPI inflation in September than retail inflation. WPI Inflation in September jumped to 11.39% year-on-year in September. This rate stood at 9.9% in August. Inflation, therefore, continues to plague the people in the festive season. Data released earlier this week showed that India’s retail inflation rose to 5.54% in September 2026 from 4.83% in August due to a sharp rise in prices of food items, especially vegetables.
Inflation rate of fuel and electricity
In September, the inflation rate of fuel and electricity increased to 25.85% from 22.93% in August, while the inflation rate of manufactured products increased to 9.76% from 8.37%. On the other hand, inflation rate for primary articles which include food items, non-food items and minerals increased from 7.76% to 8.67%.
The ministry said the main reasons for the increase in wholesale inflation were mineral oil, food articles, crude oil and natural gas, coal and lignite, basic metals, chemicals, textiles, rubber and plastic products and electrical equipment.
Increase in Repo Rate
In early October, the RBI raised the benchmark repo rate to 5.5%. This was the first such increase since February 2023. Governor Sanjay Malhotra said, “It is clear that inflation and its dynamics are no longer the same as they were last year.” The WPI inflation data for September was released under a revised series that was introduced in June with 2022-23 as the base year to better reflect the current structure of the economy.
In the new series, the commodity basket has been expanded from 697 to 957 items and new energy sources like solar, wind and nuclear power have also been included in it.
War raising WPI inflation in FY27
Data reveal WPI is steadily rising since the beginning of this fiscal year as the West Asia war disrupted energy supplies, thanks to the blockade of the Strait of Hormuz. Most of the crude oil imported by Indian refiners travel through the Strait of Hormuz and it resulted in a hike in fertiliser costs with a spillover effect on food and commodity prices.
