India Wholesale Inflation Hits 11.39% in September 2026 as Oil and Food Prices Rise

India’s wholesale inflation rose to 11.39% in September 2026 from 9.92% in August 2026, according to a Reuters news report citing government data released on Wednesday.  

The latest figure was also above the 10.18% increase expected by economists in a Reuters poll. September recorded the highest annual inflation rate under the wholesale price index (WPI) series introduced in June, with 2022-23 as the base year. 

Oil and Gas Prices Record Sharp Increase 

Petroleum and natural gas prices rose 57.32% year-on-year in September, 2026, compared with 34.41% in August 2026. The increase came as energy supply disruptions linked to the Iran war continued to affect oil prices. 

Brent crude futures remained above $100 a barrel. In India, state-run fuel retailers have passed on only part of the higher energy costs to consumers. This has contributed to wholesale prices rising faster than retail prices. 

Food Inflation Moves Higher 

Wholesale food prices increased 8.66% in September, up from 7.05% in August. A deficient monsoon has raised concerns about food supplies, adding to the pressure on prices. 

Manufactured product prices also rose during the month. Annual inflation in this category reached 9.76%, compared with 8.37% in August. 

Manufactured Goods Add to Price Rise 

Non-food manufactured goods, which exclude food and fuel, accounted for more than half of the increase in headline wholesale inflation, according to ICRA principal economist Rahul Agrawal. 

Producer prices rose 11.39% in September, against 9.8% in the previous month, according to a Reuters calculation. The figures show that price increases extended beyond fuel and food during the month. 

RBI Raises Repo Rate 

Retail inflation also increased in September, approaching the upper end of the Reserve Bank of India’s tolerance band. The RBI, which targets retail inflation, raised its benchmark repo rate last week for the first time in nearly four years, citing wider price pressures. 

Read More: SEBI Revises PMS Rules, Introduces Common Advertising Code! 

Conclusion 

Wholesale inflation rose in September as oil, food, and manufactured goods prices increased. Energy costs and concerns over food supplies remain key factors behind the latest reading, while retail inflation has also moved higher. 

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