July WPI Inflation 2026: Slight relief has been seen in wholesale inflation (WPI Inflation) in July 2026. Wholesale inflation came down to 9.78 percent in July as compared to 9.87 percent in June. That means it has registered a decrease of 0.09 percent in a month. The government released wholesale inflation figures for July on August 14.
However, reduction in wholesale inflation rate does not mean that goods have become cheaper in the market. This simply means that the pace of increase in prices has slowed down a bit compared to last month.
Let us understand this with an easy example. If last year the price of an item in the wholesale market was Rs 100 and the inflation rate is 9.78 percent, then its price could be around Rs 109.78. That means prices are still increasing, but the pace of increase has slowed down a bit.
Food inflation increased, relief in fuel & power
The inflation rate of WPI Food Index increased to 6.65 percent in July, whereas it was 6.14 percent in June. This index includes food products prepared in factories under Manufactured Products along with food items coming under Primary Articles. WPI Food Index has 24.99 percent weightage in the total WPI.
On the other hand, there has been news of relief from the Fuel & Power sector. Inflation in this category was 27.41 percent in June, which came down to 20.05 percent in July. This means that the pace of inflation in wholesale prices of petrol, diesel, gas and electricity has reduced.
Inflation of primary articles reached 8.52 percent
Primary articles include raw materials and primary food items. The inflation rate of this category increased from 7 percent in June to 8.52 percent in July.
This includes categories like Cereals, Vegetables, Other Food Articles, Non-Food Articles, Minerals and Crude Petroleum. The effect of increase in wholesale prices of these items can be seen in the retail market in future also.
The increase in the prices of food items has a direct impact on the kitchen budget of the common family. Increase in wholesale prices of essential commodities like pulses, grains, vegetables and milk may also put pressure on retail prices.
The pace of inflation in Fuel & Power reduced
Fuel & Power inflation declined from 27.41 percent in June to 20.05 percent in July. Reduction in the cost of petrol, diesel and electricity may reduce the pressure on transportation and logistics costs.
Due to reduced cost of freight transportation, expenses of companies and businessmen can reduce. This can be beneficial in keeping the prices of products stable in future. At the same time, when fuel becomes expensive, the cost of almost the entire supply chain increases.
Inflation of manufactured products 8.29 percent
The inflation rate of goods manufactured in factories has also increased in July. Inflation of manufactured products increased to 8.29 percent in July as compared to 7.48 percent in June.
This category includes many products like clothes, packaged food, soap, oil, utensils, vehicles and electronic goods.
Manufactured Products have the highest weightage in WPI Basket at 64.23 percent. Therefore, changes in prices of this sector have a major impact on overall wholesale inflation. The production cost of companies may increase if raw materials like steel, plastic, rubber and chemicals become expensive. In such a situation, companies can pass on some part of the increased cost to the customers.
Who has what weightage in WPI Basket?
WPI Basket has three major parts. Among these, the weightage of Primary Articles is 22.62 percent, of Fuel & Power is 13.15 percent and of Manufactured Products is 64.23 percent.
There are four major parts of Primary Articles—Food Articles, Non-Food Articles, Minerals and Crude Petroleum. Food articles include items like grains and vegetables, while non-food articles include items like oilseeds.
What will be the impact on the common man?
WPI does not directly measure consumer inflation. However, if wholesale prices remain high for a long time, it may impact retail prices. If companies' production costs increase, they can pass on some of it to consumers.
Retail Inflation in India is measured through Consumer Price Index i.e. CPI, while WPI reflects the changes in the prices of goods in the wholesale market. In Retail Inflation, the weightage of Food and Beverages is about 45.86 percent, that of Housing is 10.07 percent and the share of other commodities including fuel is included.
Slight relief in inflation, but pressure remains
WPI inflation falling to 9.78 percent in July is a sign of slight relief in the pace of inflation. There has been relief from the big decline in the inflation of Fuel & Power, but on the other hand the inflation of Food and Manufactured Products has increased.
In such a situation, despite a slight decline in wholesale inflation, the price pressure has not completely ended. The trend of prices of food items, raw materials and fuel in the coming months will be important in deciding how much it impacts the common people and businessmen.
Don't forget to follow Read.Com's WhatsApp channel.