Wholesale inflation rises to 9.68% in May on higher fuel, manufacturing costs

Wholesale price inflation accelerated to 9.68% in May under the revised base year series, primarily due to rise in fuel and power prices, according to government data released on Monday.

According to the provisional estimates, annual WPI inflation stood at 9.68% in May, higher than 8.26% in April.

The Wholesale Price Index (WPI) for all commodities rose to 109.9 in May from 108.8 in the previous month.

Inflation in the fuel and power category surged to 30.33% in May from 24.89% in April, led by a sharp increase in prices of mineral oils and crude petroleum and natural gas.

Within the segment, inflation in mineral oils rose to 49.82% in May from 40.74% in April, while crude petroleum and natural gas recorded inflation of 61.51% against 56.31% in the preceding month.

Inflation in primary articles also increased to 4.99% in May from 3.78% in April, while manufactured products inflation edged up to 7.48% from 6.68%.

The government said mineral oils, crude petroleum and natural gas, chemicals and chemical products, and basic metals were among the major contributors to wholesale inflation during April and May.

The WPI food index, comprising food articles and manufactured food products, recorded inflation of 4.49% in May, up from 3.11% in April.

The government has expanded the WPI basket to 957 items from 697 earlier and included newer energy sources such as solar, wind and nuclear electricity.

The revised series also reorganises the energy basket by moving crude petroleum and natural gas from the primary articles category to fuel and power.

Alongside the new WPI series, the Office of Economic Adviser released the Output Producer Price Index (OPPI), a trial Input Producer Price Index (IPPI) for manufacturing, and Service Producer Price Indices for seven service sectors.

The government said the WPI and producer price indices would be published simultaneously for five years to facilitate a gradual transition towards the producer price framework, which aligns with international practices.

"The recent cooling in global energy and commodity prices after the easing of tensions in the West Asia is expected to provide respite to the WPI inflation print for June 2026," Rahul Agrawal, Principal Economist, ICRA Ltd, said in a statement.