Wholesale inflation rises to 11.39% in September, led by fuel and power at 25.85%
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%.
Published 15 October 2026. Written by Pratidin from the reports linked at the end; every fact checked by a separate review before publishing. How we work
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?
- 1 only
- 1 and 2 only
- 2 and 3 only
- 1, 2 and 3
Show answer
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.
Use this in UPSC Mains: previous-year questions
Recurring theme: Measuring inflation in India: WPI, CPI and what drives price pressure
- How to use this
Use the September 2026 data to show food inflation is moving with fuel and input costs, which monetary policy cannot quickly fix.
- WPI food articles inflation rose to 8.14% in September 2026 from 5.67% in August.
- Fuel and power inflation of 25.85% raises transport and processing costs, a supply-side push that rate hikes act on only slowly.
- The RBI targets CPI, so wholesale food and fuel spikes are an early warning rather than a direct policy target.
- How to use this
Cite wholesale and retail inflation in 2026 to show how rising input costs threaten real incomes of the poor.
- WPI inflation hit 11.39% in September 2026 while CPI inflation was 5.54%.
- Cumulative WPI inflation for April to September 2026 was 9.85%, against minus 0.20% a year earlier, showing persistent cost pressure.
Directly tests WPI versus CPI: this story sets out that the WPI leaves out services and that the RBI targets CPI.
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.
- 1Manufactured products63.13: metals, chemicals, textiles, food products and more
- 2Primary articles22.76: food articles, non-food articles, minerals
- 3Fuel and power14.11: now includes crude petroleum and natural gas
- 4WPI Food Index24.998: food articles plus manufactured food products, drawn from across groups
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.
- Goods only, at basic prices
- Compiled by the Office of the Economic Adviser, DPIIT
- Base 2022-23, 957 items
- September 2026: 11.39%
- Goods and services at retail
- Compiled by MoSPI
- Base 2024
- September 2026: 5.54%
Go deeper
Why it matters for UPSC
Prelims asks what each price index covers, who compiles it and what changed in a base revision. Mains asks why inflation measures diverge and how cost pressure moves into retail prices.
The core idea
The Wholesale Price Index measures goods prices at the first point of bulk sale, at basic prices. Its new 2022-23 series came with a family of Producer Price Index measures that will replace it after five years. The Consumer Price Index measures what households pay, including services, and anchors the RBI's target. Comparing them needs care because a Base year revision changes the basket, weights and method.
Numbers and dates to remember
- WPI inflation: 11.39% in September 2026; 9.92% in August; 9.78% in July (final).
- Fuel and power: 25.85%; crude petroleum and natural gas: 57.32%; mineral oils: 40.02%.
- Manufactured products: 9.76%; basic metals 16.96%; chemicals 16.74%.
- Food articles: 8.14%; WPI Food Index: 8.66%.
- April to September 2026 cumulative: 9.85% (minus 0.20% a year earlier).
- CPI inflation: 5.54% in September 2026.
Where to go next
- Wholesale Price Index: what it covers, who makes it and how it is weighted.
- Producer Price Index: the indices that will replace the WPI.
- Consumer Price Index: the retail index the RBI targets.
- Base year revision: why the basket and base change, and what to watch when comparing.
Go deeper: does high WPI inflation matter if CPI is lower?
The case that it matters. The WPI captures input costs. When fuel and power rises 25.85% and basic metals 16.96%, manufacturers pay more for energy and materials. Unless demand is weak or margins are wide, part of that cost reaches shop prices with a lag. The trial Input PPI, which uses purchasers' prices for manufacturing inputs, also rose, from 104.2 in August to 106.1 in September. Cumulative WPI inflation of 9.85% for April to September shows this is not a one-month spike.
The case for caution. The Consumer Price Index is what households face, and it covers services, which the WPI leaves out. The WPI uses basic prices without GST and margins, so raw commodity swings show up more sharply in it. The September figure is provisional, with an 83.4% weighted response rate, and can be revised.
Comparing over time. The new Wholesale Price Index series started on 15 June 2026. The Office of the Economic Adviser publishes linking factors (1.53 for all commodities) to join old and new series but warns users to be careful with comparisons across them. This is a general lesson of any Base year revision.
The policy frame. The RBI targets CPI inflation, so WPI data feed policy as an early signal, not a target. The move to a Producer Price Index family follows international practice and IMF recommendations, and will give separate output, input and service price measures.
Wholesale Price Index
What the WPI covers, who compiles it and how it is weighted.
In one line: The WPI tracks the prices of goods at the first point of bulk sale, compiled by the Office of the Economic Adviser, DPIIT.
What it covers
The WPI measures goods only, in three major groups: primary articles (weight 22.76), fuel and power (14.11) and manufactured products (63.13). A WPI Food Index (24.998) pools food articles and manufactured food products. It uses basic prices, which exclude net taxes such as GST and trade and transport margins.
How it is released
Data come out on the 14th of the next month, or the next working day. The first figure is provisional and is finalised two months later. July 2026, for example, was finalised at 9.78%, unchanged.
Why it is in the news
September 2026 inflation of 11.39% was driven by fuel and power at 25.85%.
Where to go next
Producer Price Index
The indices that will replace the WPI after five years.
In one line: A Producer Price Index measures prices received by producers; India began compiling a family of PPIs with base 2022-23.
The three kinds
- Output PPI: monthly, weighted by the supply table of the 2022-23 Supply and Use Tables.
- Trial Input PPI: for manufacturing only, published on an experimental basis, using purchasers' prices because industries buy inputs from the market. It rose from 104.2 in August to 106.1 in September 2026.
- Service PPIs: quarterly, for seven services: banking, securities transactions, insurance, pension fund management, railways, air passenger transport and telecom.
Why it matters
The WPI will be released for five years alongside the PPIs and then discontinued. This follows international practice and IMF recommendations, and for the first time gives India a price measure for services at the producer level.
Where to go next
Consumer Price Index
The retail index the RBI targets.
In one line: The CPI measures changes in the retail prices households pay for goods and services, and is compiled by MoSPI.
How it differs from the WPI
The CPI includes services, which the WPI does not. It is measured at retail, after taxes and margins. It is the index in which the RBI's inflation target is set, so monetary policy reacts to CPI, not WPI.
The current reading
CPI inflation (base 2024) was 5.54% in September 2026, up from 4.83% in August. Consumer food price inflation was 7.74%. WPI inflation in the same month was 11.39%.
Why the gap matters
A WPI rate far above the CPI rate signals cost pressure on producers. Whether it reaches households depends on how much firms pass on.
Where to go next
Base year revision
Why the basket and base change, and what to watch when comparing.
In one line: A base year revision updates a price index's reference year, basket and weights so that it reflects the current economy.
What changed in the WPI
The base moved from 2011-12 to 2022-23. Items rose from 697 to 957. Weights now use gross value of output instead of net traded value. Solar, wind and nuclear power were added to electricity. Crude petroleum and natural gas moved to fuel and power. Missing prices are now filled by targeted mean imputation instead of carrying forward the last price, and elementary indices use a short-term formula.
Comparing old and new
Linking factors join the two series: 1.53 for all commodities, 1.71 for primary articles, 1.65 for fuel and power and 1.44 for manufactured products. The Office of the Economic Adviser advises caution in comparing across series.
Where to go next
Take the 15 October 2026 quiz: 30 Prelims-style questions with answers