“Rise in energy, petrochemicals and metals points to renewed cost-push inflation with broad-based acceleration with inflation in Fuel and Power increasing to 27.41%, Manufactured Products to 7.48%, and Primary Articles to 7%. Persistent increases in wholesale prices, particularly in upstream industries, could gradually pass through to downstream manufacturing and consumer prices with a lag unless offset by productivity gains or lower input costs” said Mr. Rajeev Juneja, President PHDCCI.

“Higher prices of petroleum products primarily reflect increased crude oil inventory and refining costs. Since petroleum products constitute a major input for freight transportation, logistics, aviation, power generation and industrial production, sustained increases are expected to raise operating costs across multiple sectors”, he added.

The revised WPI basket has been expanded from 697 to 957 items, incorporating emerging sectors and improving the representation of the evolving structure of the Indian economy. The new series also adopts Gross Value of Output (GVO) as the basis for weights, introduces improved methods for index compilation and missing data imputation, and reorganises the energy basket by placing crude petroleum and natural gas under the Fuel and Power group. Renewable energy sources, including solar and wind, as well as nuclear electricity, have also been incorporated into the index.

Introduction of the revised Wholesale Price Index (WPI) series with base year 2022-23 along with the launch of Output Producer Price Index (OPPI), Trial Input Producer Price Index (IPPI) and Service Producer Price Indices (Service PPIs) is a welcome move, he added.

The chemical industry has experienced rising prices owing to higher feedstock costs linked to crude oil and natural gas, increased prices of imported intermediates and stronger demand from pharmaceuticals, construction materials, automobiles and consumer goods industries.

Food inflation at the wholesale level (5.49% YoY) has increased, reflecting higher prices of processed food products and selected agricultural commodities. However, food price pressures remain considerably lower than energy-related inflation.

“The latest wholesale inflation data indicate that energy and commodity prices continue to be the principal drivers of producer inflation, due to persistent geopolitical challenges, will put pressures on corporate margins in the short term”, said Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI.

“The launch of the new WPI and Producer Price Index series represents an important modernization of India’s price statistics architecture. The updated methodology, expanded coverage, and improved representation of economic activity will provide policymakers, businesses, and researchers with more accurate and relevant indicators of producer-level price movements said Mr. Rajeev Juneja, President, PHDCCI.

Office of the Economic Adviser, has launched a revised series of the Wholesale Price Index (WPI) with base year 2022-23, replacing the existing 2011-12 series. Simultaneously, the Government has introduced new series of Output Producer Price Index (OPPI), Trial Input Producer Price Index (IPPI), and Service Producer Price Indices (Service PPIs) for selected service sectors.

The revised framework reflects structural changes in the Indian economy, incorporates a larger basket of commodities, and adopts improved methodologies for weighting, index compilation, and treatment of missing data. The new WPI basket contains 957 items compared to 697 items in the previous series and includes emerging energy sources such as solar, wind, and nuclear power.

But looking ahead, the recently announced framework agreement between the United States and Iran, including the proposed reopening of the Strait of Hormuz, could have important implications for wholesale inflation in India, he said.

Global crude oil prices have already declined sharply on expectations of improved energy supplies and reduced geopolitical risk, with Brent crude falling by around 4% following the announcement.

Since fuel and power inflation was a key driver of the 9.68% WPI inflation recorded in May 2026, a sustained easing in international oil prices could moderate cost pressures across fuel, transport, chemicals, metals, and other energy-intensive sectors in the coming months.

The newly released Output Producer Price Index recorded an index level of 109.6 in May 2026, while the Trial Input Producer Price Index for the manufacturing sector stood at 104.9. Service Producer Price Indices have also been released for seven service sectors, including banking, insurance, telecom, railways, air passenger transport, securities transactions, and pension fund management.

The parallel publication of WPI and PPI over the next five years will facilitate a smooth transition toward a producer price framework that is increasingly adopted across advanced and emerging economies. Going forward, the expanded data on producer price indicators is expected to strengthen inflation analysis, and improve industry-level price monitoring said Dr. Ranjeet Mehta, SG & CEO, PHDCCI.

“The increase in wholesale inflation in April 2026 was largely driven by a sharp rise in energy and petroleum-related prices, which also contributed to higher input costs across several manufacturing segments. In contrast, food-related wholesale inflation remained relatively moderate compared with recent periods of raised volatility said Mr. Rajeev Juneja, President, PHDCCI.”

The WPI Fuel & Power group recorded inflation of 24.71 per cent in April 2026, up from 1.05 per cent in March 2026. Crude petroleum and natural gas inflation rose significantly to 67.18 per cent, while petrol and high-speed diesel inflation increased to 32.40 per cent and 25.19 per cent respectively.

Global Brent crude prices witnessed a high surge reflecting heightened geopolitical risk, supply disruptions, and tightening global energy markets, he added.

Primary Articles inflation increased to 9.17 per cent in April 2026, supported by higher prices of crude petroleum & natural gas, food articles, and minerals. Manufactured Products inflation also strengthened to 4.62 per cent, reflecting broad-based increases across several industrial groups including basic metals, chemicals, textiles, machinery and food products.

On a month-on-month basis, the headline WPI increased by 3.86 per cent in April 2026 over March 2026, with Fuel & Power registering a substantial monthly increase of 18.22 per cent.

The WPI Food Index rose modestly to 2.31 per cent in April 2026 from 1.85 per cent in March 2026. Within food categories, inflation remained contained in cereals and pulses, while prices of vegetables and fruits recorded mixed movements. Onion prices continued to remain lower on a year-on-year basis, while milk and protein-based food items registered moderate increases.

Among manufactured products, inflation in basic metals increased to 7.00 per cent, textiles to 7.30 per cent, and chemicals and chemical products to 5.09 per cent, indicating rising cost pressures across industrial supply chains.

The provisional WPI index for All Commodities stood at 167.0 in April 2026, compared with 160.8 in March 2026. The final WPI inflation rate for February 2026 was revised to 2.26 per cent.

DPIIT stated that the WPI for April 2026 was compiled with a weighted response rate of 96.7 per cent. The provisional figures are subject to revision in line with the established revision policy.

“Going forward, movements in global energy prices, commodity markets, and supply chain conditions will remain important determinants of wholesale price trends. The evolving trajectory of fuel costs and transmission into manufacturing and transport sectors will continue to be monitored closely in the coming months says Dr. Ranjeet Mehta, SG & CEO, PHDCCI

The marginal uptick in WPI was primarily driven by higher inflation in the Fuel & Power and Manufactured Products groups on a month-on-month basis, he highlighted.

Inflation in the Fuel and Power category (weight: 13.15%) rose from 0.90% in November 2025 to 1.23% in December 2025, reflecting increased prices of electricity (4.46%), coal (0.66%), and mineral oils (0.07%) during the month, Mr. Juneja noted.

The Manufactured Products group (weight: 64.23%) witnessed an uptrend, moving from a deflation of (-) 0.21% in November 2025 to an inflation of 0.41% in December 2025 on a month-on-month basis. This increase was attributed to higher prices in the manufacture of basic metals, chemicals and chemical products, non-metallic mineral products, textiles, cement, lime and plaster, he added.

Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI, stated that WPI inflation is expected to remain range-bound, supported by benign international crude oil prices, GST rate rationalisation, and healthy rabi crop production.