# Wholesale inflation rises to 11.39% in September, led by fuel and power at 25.85% URL: https://upsc.help/current-affairs/2026-10-15/wpi-september-2026-11-39/ Date: 15 October 2026 (2026-10-15) Source: The Hindu, Page 1 UPSC papers: GS3 Publisher: upsc.help (Pratidin), free and open-source UPSC Civil Services current affairs. Not affiliated with UPSC. Every fact was checked against the source reports by a separate review before publishing. **In one line:** Wholesale prices rose 11.39% in September 2026, driven by fuel, metals, chemicals and food, while retail inflation stayed at 5.54%. Inflation measured by the Wholesale Price Index (WPI) rose to 11.39% in September 2026, from 9.92% in August, according to provisional data released on 14 October by the Office of the Economic Adviser, DPIIT, Ministry of Commerce and Industry. The index stood at 112.5 against 110.8 in August, on the new 2022-23 base. The final figure for July was left unchanged at 9.78%. The release names mineral oils, food articles, crude petroleum and natural gas, coal and lignite, basic metals, chemicals, textiles, rubber and plastic products and electrical equipment as the main drivers. The provisional September index rests on a weighted response rate of 83.4%, so it can be revised. Fuel and power was the hottest group at 25.85% (August: 22.93%). Inside it, crude petroleum and natural gas rose 57.32% and mineral oils 40.02%, while coal and lignite jumped to 9.31% from 1.57%. Manufactured products, which carry 63% of the weight, rose 9.76% (August: 8.37%), with basic metals at 16.96%, chemicals at 16.74% and textiles at 13.85%. Primary articles rose 8.67%; food articles alone climbed to 8.14% from 5.67%. The WPI Food Index, which adds manufactured food products, was 8.66%. For April to September 2026, cumulative WPI inflation was 9.85%, against minus 0.20% in the same period a year earlier. The figure comes from the new series introduced on 15 June 2026, whose first release covered May 2026. It moved the base from 2011-12 to 2022-23, enlarged the basket from 697 to 957 items, and weights items by gross value of output. Prices are basic prices, without GST and trade margins. Retail inflation measured by the Consumer Price Index (CPI) was 5.54% in September, less than half the WPI rate. The WPI covers only goods and gives fuel, metals and chemicals a larger share, while the CPI includes services and is the index the RBI targets. A wide gap means producers face sharply higher input costs; how much of this reaches consumers depends on whether firms pass it on. ## Prelims facts - WPI inflation was 11.39% in September 2026, up from 9.92% in August; the July final figure stayed at 9.78%. - Fuel and power inflation was 25.85%, with crude petroleum and natural gas up 57.32% and mineral oils up 40.02%. - The WPI is compiled by the Office of the Economic Adviser, DPIIT, and released on the 14th of each month. - The new WPI series (base 2022-23, from 15 June 2026) has 957 items, uses gross value of output weights and basic prices. - CPI inflation was 5.54% in September 2026, so WPI inflation was more than double retail inflation. ## Quick recall - **WPI inflation in September 2026?** 11.39% (provisional), up from 9.92% in August. - **Who compiles the WPI?** The Office of the Economic Adviser, DPIIT, Ministry of Commerce and Industry. - **Base year of the new WPI series?** 2022-23, replacing 2011-12, from the release of 15 June 2026. - **Number of items in the new WPI basket?** 957, up from 697 in the 2011-12 series. - **Weight of manufactured products in the new WPI?** About 63.13 out of 100. - **Fuel and power inflation in September 2026?** 25.85%; crude petroleum and natural gas rose 57.32%. - **Does the WPI include GST?** No. It uses basic prices, which exclude net taxes and trade and transport margins. - **CPI inflation in September 2026?** 5.54% (provisional), on the CPI's 2024 base. ## Prelims practice question With reference to the new Wholesale Price Index series with base year 2022-23, consider the following statements: 1. Its basket has more items than the 2011-12 series. 2. Commodity weights are based on gross value of output. 3. Its prices include GST paid at the point of sale. Which of the statements given above is/are correct? (a) 1 only (b) 1 and 2 only (c) 2 and 3 only (d) 1, 2 and 3 Answer: (b) 1 and 2 only. Statement 1 is correct: the basket grew from 697 to 957 items. Statement 2 is correct: weights moved from net traded value to gross value of output. Statement 3 is wrong: the WPI uses basic prices, which exclude net taxes such as GST and trade and transport margins. ## UPSC previous-year questions this connects to - UPSC Prelims 2020, Prelims: Consider the following statements: 1. The weightage of food in Consumer Price Index (CPI) is higher than that in Wholesale Price Index (WPI). 2. The WPI does not capture changes in the prices of services, which CPI does. 3. Reserve Bank of India has now adopted WPI as its key measure of inflation and to decide on changing the key policy rates. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 3 only (d) 1, 2 and 3 (https://upsc.help/pyq/q314-consider-following-statements-1-weightage-food-consumer/) - UPSC Mains 2024, GS3: What are the causes of persistent high food inflation in India? Comment on the effectiveness of the monetary policy of the RBI to control this type of inflation. (https://upsc.help/pyq/q088-causes-persistent-high-food-inflation-india-effectiveness/) How to use this story in the answer: Use the September 2026 data to show food inflation is moving with fuel and input costs, which monetary policy cannot quickly fix. - UPSC Mains 2022, GS2: Besides the welfare schemes, India needs deft management of inflation and unemployment to serve the poor and the underprivileged sections of the society. Discuss. (https://upsc.help/pyq/q214-besides-welfare-schemes-india-needs-deft-management/) How to use this story in the answer: Cite wholesale and retail inflation in 2026 to show how rising input costs threaten real incomes of the poor. ## Mains practice question WPI inflation crossed 11% in September 2026 while CPI inflation stayed near 5.5%. Explain why the two indices diverge and what the gap means for policy. (150 words) ### Model answer In September 2026 WPI inflation rose to 11.39% while CPI inflation was 5.54%. The gap reflects what each index measures. ## Why they diverge - **Basket**: the WPI covers goods only; the CPI includes services. - **Weights**: fuel and power (14.1%) and manufactured goods (63.1%) dominate the WPI; fuel and power inflation was 25.85%, crude petroleum and natural gas 57.32%. - **Prices**: the WPI uses basic prices, excluding GST and trade margins, so raw input shocks show up more sharply. - **Base and method**: the new WPI (base 2022-23, 957 items) and CPI (base 2024) are built differently. ## What the gap means - Producers face rising input costs, with basic metals at 16.96% and chemicals at 16.74%. - If firms pass costs on, retail inflation can rise with a lag. - The RBI targets CPI, but the WPI is an early signal of cost pressure. The gap is a warning about cost pressure that policy should track, not a measure of household inflation. ## The basics ## Why this matters Inflation questions are a fixture of GS3 and Prelims. The September 2026 Wholesale Price Index (WPI) shows prices at the factory gate and in bulk trade rising more than twice as fast as retail prices. To read such a number you need three basics: what the WPI measures, how its new 2022-23 series is built, and why it differs from the Consumer Price Index (CPI). ## What the WPI measures The WPI tracks the prices of goods at the first point of bulk sale. It is compiled by the Office of the Economic Adviser in the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, and released on the 14th of every month. It covers only goods, not services. Its prices are basic prices, which leave out net taxes such as GST and trade and transport margins. ## The new series From 15 June 2026 the base year moved from 2011-12 to 2022-23. The basket grew from 697 to 957 items. Weights now come from the gross value of output, not net traded value. Solar, wind and nuclear power were added to electricity, and crude petroleum and natural gas moved from primary articles to fuel and power. The WPI will run for five years beside new Producer Price Indices (PPI) and then be dropped in their favour. See Producer Price Index and Base year revision. ## Reading September The rise is broad. Fuel and power led, but metals, chemicals, textiles and food also rose faster than in August. ## WPI versus CPI The Consumer Price Index measures what households pay at retail, including services, and it is the index the RBI's inflation target is set in. In September 2026 CPI inflation was 5.54%, less than half the WPI rate. The baskets differ, so the two can move far apart for months. ## Sources - https://www.indiangovtscheme.com/wholesale-price-index-base-year-2022-23-for-the-month-of-september-2026/ - https://www.businesstoday.in/latest/economy/story/wholesale-inflation-rises-to-11-39-in-september-from-augusts-9-9-on-higher-fuel-food-prices-561503-2026-10-14 - https://www.eaindustry.nic.in/press_release/press_release_202606.pdf - https://www.mospi.gov.in/uploads/latestreleasesfiles/1791801549227-Press%20Release%20for%20the%20month%20of%20September,%202026.pdf - https://superkalam.com/current-affairs/15-10-2026/wholesale-inflation-rises-to-49-month-high-of-11-4-pg1-ab0bd215-02fd-4961-80f4-6451a6409b96