Inflation In India Rising Sharply Since January 2026, Highest In June

Inflation – both wholesale and retail – in India has been rising sharply since January 2026. Wholesale inflation for all commodities rose from 1.19 per cent in January 2026 to 9.87 per cent in June 2026, while retail inflation during this period rose from 2.74 per cent to 4.38 per cent. It is obvious that the rise in wholesale inflation is not yet fully reflected in the retail inflation though it has accelerated this month, breaching the Reserve Bank’s 4% target for the first time in 17 months.

It is a clear indication that the Union Government of India is no longer able to absorb the full impact of the sharp rise in wholesale inflation. It has already started spilling over to end users pushing the retail inflation up, and it may accelerate further due to multiple external and internal reasons.

According to the data released on July 14, the all India Wholesale Price Index (WPI) inflation for June 2026 was 9.87 per cent on year-on-year (YoY) basis, compared to 9.68 per cent in May 2026. The index for All Commodities for June 2026 stands at 110.2, whereas it was 109.9 in May 2026.

YoY inflation rates based on WPI for major groups, namely, Primary Articles, Fuel and Power, and Manufactured Products were 7.0 per cent, 27.41 per cent, and 7.48 per cent, respectively in June 2026, compared to 4.99 per cent, 30.33 per cent, and 7.48 per cent, respectively in May 2026.

In January 2026, wholesale inflation for food articles was in negative (-1.3 per cent), which rose to 5.49 per cent in June 2026. For non-food articles it was 3.98 per cent and 11.07 per cent respectively, while for minerals it rose from negative (-0.45 per cent) to 9.45 per cent.

Wholesale inflation for all commodities jumped to 3.98 per cent in March from 2.18 per cent in February and 8.36 per cent in April, primarily due to West Asia crisis on account of Iran war. Mineral oil inflation jumped from negative (-4.19 per cent) in January to 4.26 per cent in March, 40.74 per cent in April, and 49.82 per cent in May. In June it eased to 46.48 per cent. For crude petroleum and natural gas, inflation was negative (-9.95 per cent) in January, 26.13 per cent in March, 56.31 per cent in April, and 61.51 per cent in May. In June it eased to 34.75 per cent.

The indices for Primary Articles, Fuel and Power, and Manufactured Products are 116.1, 111.1, and 107.8, respectively, in June 2026, whereas they were 113.7, 113, and 107.8, respectively, in May 2026.

Across groups, ‘Mineral Oils (containing Petroleum Products)’, ‘Food Articles’, ‘Manufacture of Basic Metals’, and ‘Manufacture of Chemicals and Chemical Products’, have been major drivers of WPI inflation in June 2026.

The WPI Food Index (weight=24.99 per cent) consists of ‘Food Articles’ from Primary Articles major group, and ‘Manufacture of Food Products’ from Manufactured Products major group. It observed a YoY inflation of 6.14 per cent in June 2026, compared to 4.49 per cent in May 2026.

The final index for the month of April 2026 has been revised from 108.8 (Provisional estimate) to 108.9. Accordingly, WPI inflation has been revised from 8.26 per cent, as per provisional estimate to 8.36 as per the final estimate.

The Final Estimate of WPI (Base Year 2022-23) for the month of April 2026 has been compiled with a weighted response rate of 97.5 per cent.

The Provisional Estimate of WPI (Base Year 2022-23) for the month of June 2026 has been compiled with a weighted response rate of 82.6 per cent.

It should be recalled that wholesale inflation of all commodities in April-June 2024 was 1.72 per cent and in April-June 2025 there was zero inflation.

The Union Ministry of Commerce and Industry has also released provisional estimates of Output Producer Price Index (Base Year 2022-23) for the month of June 2026, along with the WPI. According to the data, All India Output PPI for All Commodities for June 2026 stands at 109.9, whereas it was 109.6 in May 2026.

WPI indices for Agriculture, Forestry and Fishing; Mining and Quarrying; Manufactured Products; and Electricity were 114.1, 121.5, 109.2, and 92.0, respectively, in June 2026, whereas they were 111.9, 122.3, 109.5, and 90.2, respectively, in May 2026.

The final index of Output PPI for the month of April 2026 has been revised from 108.6 (Provisional estimate) to 108.8.

The data released for Provisional Estimates of Trial Input Producer Price Index (IPPI) (Base Year 2022-23) for the month of June shows that All India trial Input PPI for Manufacturing Sector for June 2026 stands at 107.1. Trial Input PPI for Manufacturing Sector for the month of April 2026 has been revised from 104.9 (provisional estimate) to 104.2 (final estimate).

As for latest data released on retail inflation on July 13, retail inflation based on Consumer Price Index in June, 2026 was 4.38%, while year on year food inflation, based on Consumer Food Price Index, in June, 2026 was 5.32%.

Year-on-year retail inflation rate based on All India Consumer Price Index (CPI) with base year 2024 for the month of June, 2026 over June, 2025 was 4.38% (Provisional). Corresponding inflation rates for rural and urban were 4.74% and 3.92%, respectively.

Year-on-year retail food inflation rate based on All India Consumer Food Price Index (CFPI) for the month of June, 2026 over June, 2025 was 5.32% (Provisional). Corresponding inflation rates for rural and urban were 5.45% and 5.09%, respectively.

Year-on-year Housing inflation rate for the month of June, 2026 was 2.10% (Provisional) and the corresponding inflation rates for rural and urban were 2.66% and 1.90%, respectively. (IPA Service)