New Delhi [India], October 15 (ANI): India’s wholesale price inflation is likely to remain elevated through the current financial year as higher global energy and food prices, along with an unfavourable base effect, continue to put pressure on prices, ICICI Bank said in a research report.
Wholesale price index (WPI) inflation rose to 11.4 per cent year-on-year in September 2026 from 9.9 per cent in August, driven by higher fuel, manufactured goods and food prices, the report said. Inflation was at minus 0.2 per cent in September 2025, creating a low base for comparison.
“Given the current headwinds and unfavorable base effect, wholesale inflation is likely to remain elevated in the near term,” the report said.
The bank said a below-normal monsoon could keep cereal and pulse prices elevated, adding to food inflation pressures.
Fuel and power inflation climbed to 26 per cent in September from 23 per cent in August, led by higher mineral oil prices. Inflation in mineral oils rose to 40 per cent, compared with 38.5 per cent in the previous month.
The report noted that global crude oil prices, which averaged around USD 69 per barrel in FY26, had risen to USD 94.6 per barrel in the financial year so far. Higher global energy prices and transportation costs could push fuel inflation higher in the coming months, it said.
Manufactured products inflation also increased to 9.8 per cent in September from 8.4 per cent in August, reaching its highest level in 30 months. Basic metals inflation rose sharply to 17 per cent from 11 per cent, reflecting higher global commodity prices.
Chemical products recorded inflation of 16.7 per cent, while textiles saw 14 per cent and rubber and plastic products 13.5 per cent. Electrical equipment inflation stood at 12 per cent, while motor vehicles recorded 4.5 per cent.
Food prices also remained under pressure. Primary food articles inflation increased to 8.1 per cent in September, with vegetables recording inflation of 16.5 per cent, compared with 3.1 per cent in August. Fruit prices rose 16.6 per cent year-on-year.
Condiments and spices inflation reached a series high of 34.3 per cent, driven partly by a 98.7 per cent rise in garlic prices. Onion prices increased 191 per cent year-on-year.
The report also showed that the output Producer Price Index (PPI) rose to 11.4 per cent in September from 9.8 per cent in August, reflecting higher prices in mining and manufacturing. Mining output prices increased 21.3 per cent year-on-year, while manufactured product prices rose 12.6 per cent.
ICICI Bank’s outlook indicates that elevated energy and food costs, together with the base effect, could continue to sustain wholesale inflation through FY27. (ANI)
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