India’s wholesale price inflation (WPI) rose sharply to 9.68% in May 2026 from 8.26% in April, driven by soaring fuel, food, and manufacturing costs amid continued disruptions in global energy markets. The latest figure marks the highest WPI inflation recorded under the revised 2022-23 base year series.
According to data released by the Commerce and Industry Ministry, the increase was primarily fueled by rising prices of crude petroleum, natural gas, mineral oils, chemicals, and basic metals. The fuel and power category, which now carries a weight of 14.1% in the index, registered inflation of 30.33% in May compared to 24.89% in April. Inflation in crude petroleum alone stood at 61.51%.
The surge reflects the impact of the ongoing West Asia conflict and the effective blockade of the Strait of Hormuz, a critical route for India’s crude oil imports. Higher energy costs also contributed to an increase in food inflation, which rose to 3.60% in May from 2.43% a month earlier. Inflation in manufactured products climbed to 7.48% from 6.68%.
The ministry simultaneously introduced a revised WPI basket, expanding the number of items from 697 to 957. Renewable energy sources such as solar and wind power, along with nuclear electricity, have been included. It also released Producer Price Indices (PPI) for the first time, covering both input and output prices across industries and select services.
The government plans to gradually transition from WPI to PPI over the next five years in line with international standards.
Economists expect some moderation in wholesale inflation during June as global crude prices ease following signs of de-escalation in West Asia. However, concerns over a potential El Niño impact on the monsoon could keep food prices elevated. Meanwhile, retail inflation rose to 3.93% in May, remaining significantly lower than wholesale inflation despite increasing fuel-related pressures.
