India wholesale inflation moderates to 9.78 percent in July

India's wholesale inflation (WPI) moderated slightly to 9.78 percent in July 2026, down from 9.87 percent in June. This marks the first month-on-month decline in WPI inflation since October 2025.

The moderation was primarily driven by a significant drop in the fuel and power segment, where inflation fell to 20.05 percent from 27.41 percent in June. However, other sectors faced upward pressure. Primary articles inflation rose to 8.52 percent from 7.00 percent, and manufactured products increased to 8.29 percent from 7.48 percent.

Food inflation remains a concern, hitting a 19-month high of 6.65 percent in July, up from 6.14 percent in June. Key drivers of the elevated WPI include mineral oils, food articles, basic metals, and chemicals.

Economists suggest that while volatility in oil prices and El Nino effects may continue to pressure imported commodities and food prices, some analysts believe WPI inflation has peaked and may see gradual disinflation due to lower global commodity prices.