India’s wholesale inflation surges to new high of 9.68% in May

India’s wholesale inflation surged to a new high of 9.68% in May from 8.26% in April, as per the data shared by the Ministry of Commerce & Industry. The rise in inflation is driven by sharp rise in fuel, crude petroleum and manufactured chemical and metal product prices.

Inflation for Primary Articles, Fuel and Power, and Manufactured Products is 4.99 per cent, 30.33 per cent, and 7.48 per cent, respectively in May compared to 3.78 per cent, 24.89 per cent, and 6.68 per cent, respectively, in April.

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The wholesale food inflation was at of 4.49 per cent in May compared to 3.11 per cent in April.

Under the new series, the total number of items have increased from 697 to 957.

New sources of energy, such as Solar and Wind, have been added under ‘Electricity’ Group. In addition, Nuclear Electricity has been included in the basket.

Further, the Crude Petroleum and Natural Gas has been shifted from ‘Primary Articles’ to ‘Fuel and Power’ major group.

“The launch of the new WPI and Producer Price Index series represents an important modernization of India’s price statistics architecture. The updated methodology, expanded coverage, and improved representation of economic activity will provide policymakers, businesses, and researchers with more accurate and relevant indicators of producer-level price movements said Rajeev Juneja, President, PHDCCI.

PHDCCI President said, looking ahead, the recently announced framework agreement between the United States and Iran, including the proposed reopening of the Strait of Hormuz, could have important implications for wholesale inflation in India.

Global crude oil prices have already declined sharply on expectations of improved energy supplies and reduced geopolitical risk, with Brent crude falling by around 4% following the announcement, he said.

Since fuel and power inflation was a key driver of the 9.68% WPI inflation recorded in May 2026, a sustained easing in international oil prices could moderate cost pressures across fuel, transport, chemicals, metals, and other energy-intensive sectors in the coming months, he added.