India Wholesale Inflation Rises To 9.68% In May on Fuel Price Surge

India’s wholesale inflation rate accelerated to 9.68% in May 2026 from 8.30% in April, according to data released by the government. The increase reflects rising costs across fuel, manufactured goods, and food categories.

This is the first inflation print under the new Wholesale Price Index (WPI) series with 2022-23 as the base year. The data highlights continued pricing pressures in the economy amid global uncertainties.

Why Did India Wholesale Inflation Rise To 9.68% in May 2026?

The rise in wholesale inflation was primarily driven by higher fuel prices and increasing costs in core sectors. Energy prices remained elevated due to ongoing geopolitical tensions in the Middle East.

Key contributors included mineral oils, crude petroleum, natural gas, chemicals, and basic metals. These sectors have a significant weight in the WPI basket, amplifying their impact on overall inflation.

How Fuel and Power Inflation Impacted WPI In May 2026?

Fuel and power inflation surged to 30.33% in May from 24.89% in April, marking the highest contribution to overall inflation. Within this category, mineral oil inflation increased sharply to 49.82% from 40.74%.

Crude petroleum and natural gas inflation also rose to 61.51% from 56.31%. The sharp escalation in energy costs played a major role in pushing wholesale prices higher during the month.

What Is the Trend in Manufactured and Primary Articles Inflation?

Inflation in manufactured products increased to 7.48% in May from 6.68% in April, indicating rising input costs for producers. Primary articles inflation also moved higher to 4.99% from 3.78% during the same period.

This trend reflects increasing price pressures at the production and supply chain levels. The combined rise across these categories indicates a broad-based increase in wholesale prices.

How Did Food Inflation and WPI Index Change in May 2026?

Food inflation also picked up, with the WPI Food Index rising to 4.49% year-on-year from 3.11% in April. Food articles inflation increased to 3.60% from 2.43%, while manufactured food products rose to 6.14% from 4.53%.

On a month-on-month basis, the All Commodities index rose to 109.9 in May from 108.8 in April. The Fuel and Power index increased to 113.0, while the Manufactured Products index rose to 107.8 during the same period.

What Changes Were Made in the New WPI Base Year Series?

The May data marks the introduction of a revised WPI series with 2022-23 as the new base year, replacing the 2011-12 series. The updated basket now includes 957 items compared to 697 previously, reflecting changes in the economy.

New components, such as renewable energy sources like solar and wind power have been incorporated. The government has also introduced Output, Input, and Service Producer Price Indices, which will run alongside WPI for 5 years before a gradual transition.

Read More: RBI Raises FY27 Inflation Forecast To 5.1% On Higher Crude Oil Assumptions.

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Conclusion

India’s wholesale inflation accelerated in May 2026 due to rising fuel and commodity prices. The increase reflects strong upward pressure across multiple sectors, including energy and manufacturing.

The data also marks a structural shift with the introduction of a new WPI base year series. These developments highlight evolving trends in price measurement and inflation dynamics in the economy.

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