India's wholesale inflation accelerates to 9.92% in August from 9.78% in July

India’s wholesale inflation edged up to 9.92% in August from 9.78% in July, government data showed on Monday, hovering around 10% for a fourth straight month.

A Reuters poll had projected WPI inflation to accelerate to 9.89% in August.

Food inflation rose to 7.05% in August from 6.65% in the previous month.


The WPI inflation figure for June was revised up to 9.97% from the earlier estimate of 9.87%, according to the final data.

Inflation in primary articles eased to 7.76% in August from 8.52% in July, while fuel and power inflation rose sharply to 22.93% from 20.05%. Inflation in manufactured products was largely steady at 8.37%, compared with 8.29% in July.

Petroleum and natural gas prices ​rose 34.41% ​year-on-year ⁠in August after a 26.99% rise in July.

Meanwhile, consumer inflation data is due at 4 pm today. Consumer inflation is expected to have risen to a 20-month high in August, driven by higher food and fuel prices, marking a third straight month above the Reserve Bank of India’s 4% medium-term target, a Reuters poll showed.

With inflation remaining within the RBI's 2%-6% target band, the central ⁠bank held interest rates last month, although minutes of its latest meeting signalled it was prepared to ​tighten policy if price pressures broadened. It is not expected to raise rates until next year.


An erratic ​monsoon disrupted food supplies, driving up prices of essentials such as sugar, cereals, milk, edible oils, eggs and meat. Global crude prices, now nearing $108 a barrel, and higher cooking gas prices also fueled inflation pressures.

Sugar prices hit a record high in August. India's ban on sugar exports to cool domestic prices, which began in May, will stay ​in place until end- ​September.

A separate Reuters poll conducted last month showed the RBI was expected to raise rates ⁠by 25 ​basis points in the second quarter of 2027, followed ​by a further increase in the fourth quarter, taking the policy rate to 5.75%.

RBI on inflation

India’s monetary policymakers have flagged the possibility of policy rate tightening in the third quarter if higher food and fuel prices lead to a second-order impact and translate into a broad-based increase in inflation, the minutes of the Reserve Bank of India’s (RBI) August monetary policy meeting showed.

“We also need to be watchful as the risks of higher food, fuel and other input prices translating into a broad-based increase in inflation and de-anchoring of expectations persist,” RBI Governor Sanjay Malhotra said at the meeting held between August 3 and 5, in which the policy rate was kept unchanged at 5.25%.

The headline inflation measured by Consumer Price Index is projected at 5% for FY27, while the projection for the second quarter is 4.7% and the fourth quarter at 5.5%.

Core inflation, which does not include the impact of food and fuel price movements, is projected at 4.3% for FY27.

Governor Malhotra said that monetary response to a supply-side shock is warranted when there are signs of it, leading to a generalisation of inflation, de-anchoring of inflation expectations or persistent inflation.