Wholesale inflation slows to 9.78% in July amid global energy softness

India’s wholesale inflation index slipped to 9.78 % in July 2026, marginally lower than the 9.87 % recorded in June. The easing is largely driven by a sharp reduction in the energy component, which fell from 27.41 % in June to 20.05 % in July.

The decline reflects a broader global trend of falling crude oil, mineral oil and natural gas prices. Economists caution that ongoing geopolitical tensions could still create volatility, but the current trajectory points to less upward pressure on wholesale prices.

While energy inflation subsided, the manufacturing segment saw an increase to 8.29 % as firms passed higher input costs onto product prices. Food inflation remained relatively high at 5.4 %.

PHDCCI highlighted that lower energy expenses are providing some relief to manufacturers, yet price pressures persist in chemicals, basic metals and electrical equipment, driven by robust industrial demand and expanding renewable‑energy activities. The central bank’s neutral stance is expected to keep credit conditions stable for producers.

Overall, analysts expect wholesale inflation to stay elevated but to gradually ease as energy costs remain low and domestic supply conditions improve.