WPI Inflation Nears Control as Mineral Prices Surge; PPI Signals Strong Industrial Momentum in July 2026

WPI Inflation Nears Control as Mineral Prices Surge; PPI Signals Strong Industrial Momentum in July 2026​

The provisional estimates for the Wholesale Price Index (WPI), Output Producer Price Index (PPI), and Trial Input Producer Price Index (IPPI) have been released. The data indicates a moderation in all India WPI inflation, yet strong performance is visible across key industrial sectors. The combined insights suggest sustained cost pressures are being managed by production-side momentum.

Wholesale Price Index Stability Despite Commodity Headwinds​

All India Wholesale Price Index (WPI) registered an inflation rate of 9.78 per cent year-on-year (YoY) for July 2026, marking a slight cooling from the 9.87 per cent recorded in June 2026. The index for all commodities stood at 110.0, down marginally from the previous month's 110.2 level.

While WPI inflation remains elevated, certain groups are driving specific inflationary pressures. Fuel and Power saw a sharp spike, registering an YoY inflation of 20.05 per cent in July 2026. This dramatic rise contrasts with Primary Articles, which recorded 8.52 per cent YoY inflation.

Key Drivers Inflating the Goods Market​

Several major groups significantly contributed to WPI inflation during the period. Mineral Oils (containing Petroleum Products) and Manufactured Products were identified as major inflationary drivers. The Food Index showed an increase in YoY inflation to 6.65 per cent, up from 6.14 per cent in June 2026.

The manufacturing sector indices also showed robust increases. The index for Manufactured Products stood at 108.4 in July 2026, up from 107.8 in June 2026. This growth is supported by various sub-sectors within the broader manufacturing category.

Industrial Output Trends: A Look at PPI and IPPI​

The trend in industrial output prices continues to show breadth across different sectors. All India Output PPI for all commodities remained stable in July 2026, standing at 109.9, maintaining parity with the June 2026 figure.

Mining and Quarrying witnessed notable gains in the PPI. The sector registered an index of 119.4, reflecting robust output prices. Similarly, Agriculture, Forestry and Fishing maintained a strong output price momentum, registering an index of 115.6 for the month.

Input Costs Remain Managed at Trial Level​

The provisional estimate for the Trial Input PPI (IPPI) for all Manufacturing Industries stood at 105.9 in July 2026. This figure suggests that input cost pressures are being closely monitored across industries. The IPPI data, which was revised to 106.5 for May 2026 from a previous provisional estimate of 104.9, indicates careful tracking of raw material costs.

Sector Performance in Manufacturing Output​

The performance of the manufacturing sector is diverse when viewed through the lens of PPI and IPPI data. The Manufactured Products index stood at 108.8 in July 2026 (PPI). This category saw various sub-segments showing varied strength, reflecting underlying commodity volatility.

Within the detailed breakdown, Manufacture of Food Products recorded an output PPI of 115.5, while the more volatile Mineral Oils component held steady at 113.2. The broader Manufacturing sector’s resilience is evident as indicators remain generally elevated compared to previous periods.

Mining and Energy Sector Strength​

The strength in core resources was highly visible across both WPI and PPI data. For Primary Articles, the overall index stood at 117.2 in July 2026. The Mineral category within this group showed a pronounced upward trend, recording an output PPI of 177.7 for Mining of Metal Ores.

Fuel and Power also featured prominently with a dramatic spike noted in WPI. Crude Petroleum & Natural Gas stood at 114.8 in the WPI data, reflecting strong market dynamics within the energy sector. The stability across manufacturing industries is further highlighted by the fact that the Input PPI for Chemicals and Chemical Products was recorded at 109.4.