India Wholesale Inflation Nears 4-Year High

India’s wholesale prices advanced 9.68% year-on-year in May 2026, accelerating from a marginally revised 8.26% rise in April and surpassing expectations of 9.1%. This marked the fastest growth since September 2022, with manufacturing prices increasing at the fastest pace since August 2022, food prices rising at the fastest pace in 14 months, and fuel prices advancing at the fastest rate since September 2022 due to the impact of the Middle East crisis. Fuel prices surged 30.33%, driven by a sharp rise in mineral oil prices (49.82%) and crude petroleum & natural gas prices (61.51%). Meanwhile, manufacturing inflation accelerated to 7.48% from an upwardly revised 6.68%, led by tobacco products (13.59% vs 13.63% in April), chemicals and chemical products (13.40% vs 5.09%), basic metals (12.30% vs 10.59%), textiles (10.22% vs 7.30%), and food products (6.14% vs 4.53%). Food inflation also accelerated to a 14-month high of 4.49%.

India’s wholesale prices increased 8.30% year-on-year in April 2026, accelerating sharply from a 3.88% rise in March and surpassing expectations of 4.4%. This marked the fastest growth since October 2022, driven by a faster rise in manufacturing and food costs and a sharp increase in fuel prices due to the impact of the Middle East crisis. Fuel prices jumped 24.71%, marking the fastest increase since September 2022, driven by a sharp acceleration in petrol prices (32.40% vs 2.50% in March) and high-speed diesel (HSD) prices (25.19% vs 3.26%), while LPG prices rebounded (10.92% vs -1.54%). Meanwhile, manufacturing inflation accelerated to 4.62% from 3.39%, marking the fastest pace since September 2022, led by textiles (7.30% vs 4.91%), leather and chemicals and chemical products (5.09% vs 2.19%). Food inflation accelerated to a 12-month high of 2.31%, mainly driven by higher prices for eggs, meat & fish (6.68%), and milk (2.56%).

India’s wholesale prices increased 3.88% yoy in March 2026, accelerating from a 2.13% rise in February and surpassing expectations of 3%. This marked the fastest growth since January 2023, driven by a quicker rise in manufacturing costs and a rebound in fuel prices, amid geopolitical tensions in the Middle East. Food inflation remained steady. Prices for fuel and power rebounded (1.05% vs -3.78%), marking the first rise in a year, boosted by a recovery in petrol prices (2.50% vs -5.38%) and HSD (3.26% vs -3.27%). Meanwhile, manufacturing inflation accelerated to 3.39% from 2.92%, marking the fastest pace since November 2022, led by textiles (4.91% vs 3.29%), leather and related products (3.03% vs 1.58%), and chemicals and chemicals (2.19% vs 0.55%). Also, primary articles rose faster (6.36% vs 3.27%), mainly due to higher costs of non-food articles (11.50% vs 8.80%), while the food index remained at 1.85%. Monthly, wholesale prices rose 1.64%, accelerating from 0.38% in February.