New Delhi: India's wholesale inflation surged to a series-high of 11.39% in September 2026, up from 9.92% in August, as rising food, fuel and manufacturing costs intensified price pressures across the economy. Economists expect inflation to climb further in the coming months amid elevated global commodity prices and persistent energy market uncertainty.
Food Inflation Rises to a 23-Month High
Inflation in the wholesale food index increased to 8.66% in September from 7.05% in August. According to the reports, food inflation reached a 23-month high, driven by rising prices across cereals, pulses, fruits and vegetables.
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The increase highlights growing pressure on food-related supply chains, with higher commodity costs potentially affecting businesses and consumers.
Fuel and Manufacturing Costs Add to Pressure
Inflation in the fuel and power category climbed to 25.85% in September, compared with 22.93% in the previous month. Meanwhile, wholesale inflation in manufactured products rose to 9.76% from 8.37%, marking a series-high.
According to the reports, elevated international energy and metal prices could accelerate wholesale and producer price inflation in the coming months. It also reported that output producer price inflation increased to 11.4% year-on-year in September from 9.8% in August.
October Inflation Could Rise Further
The ongoing conflict in West Asia and disruptions around the Strait of Hormuz have contributed to higher global crude oil and fertilizer costs, adding to pressure on food and commodity prices.
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ICRA expects wholesale inflation to rise to around 12% in October 2026, with elevated readings potentially continuing through the third quarter of FY2027.
PHDCCI Secretary General and CEO Ranjeet Mehta said the latest figures indicate inflationary pressure at several stages of production. Sustained increases could affect corporate margins, working-capital needs and investment decisions.
Retail inflation has also increased, reaching 5.54% in September from 4.83% in August, its highest level in 23 months, largely due to rising food prices.