Insights
- India's all-commodity WPI inflation rose to 9.92 per cent YoY in August 2026 from 9.78 per cent in July, with the index at 110.8.
- Manufacture of textiles inflation eased to 12.63 per cent from 12.80 per cent, while apparel stood at 3.12 per cent.
- Fuel, food products, basic metals, non-food articles and chemicals were key price drivers, affecting sourcing cost visibility.
For textile and apparel supply chains, the manufacture of textiles index increased to 104.3 in August from 104.0 in July, with YoY inflation at 12.63 per cent against 12.80 per cent. The manufacture of wearing apparel index moved to 112.4 from 111.6, while YoY inflation eased to 3.12 per cent from 3.33 per cent, the data showed.
YoY inflation in the three major WPI groups stood at 7.76 per cent for Primary Articles, 22.93 per cent for Fuel and Power, and 8.37 per cent for Manufactured Products in August. Their respective July rates were 8.52 per cent, 20.05 per cent and 8.29 per cent. The August indices were 118.1 for Primary Articles, 108.3 for Fuel and Power and 108.8 for Manufactured Products, compared with 117.2, 105.4 and 108.4 in July, the Ministry of Commerce & Industry said in a press release.
Across groups, the release identified mineral oils, containing petroleum products, food articles, manufacture of food products, manufacture of basic metals, non-food articles and manufacture of chemicals and chemical products as the major drivers of WPI inflation in August 2026.
Among cost heads relevant to apparel and textile manufacturing, non-food articles recorded an August index of 113.3, up from 112.6 in July, while YoY inflation eased to 14.79 per cent from 17.66 per cent, the data showed. Leather and related products rose to an index of 109.7 from 109.4, with inflation at 4.48 per cent against 4.59 per cent. Chemicals and chemical products rose to 103.9 from 102.6, while rubber and plastic products rose to 107.4 from 106.3.
Manufacture of basic metals, one of the identified inflation drivers, had a WPI weight of 8.41133 and an August index of 100.9, down from 102.2 in July, according to annexure data in the release. Manufacture of chemicals and chemical products had a weight of 6.12567, manufacture of textiles carried a weight of 4.08993, manufacture of wearing apparel had a weight of 1.32948, and leather and related products had a weight of 0.54137.
The Fuel and Power increase was led by mineral oils, whose index climbed to 118.4 from 113.2 and whose YoY inflation increased to 38.48 per cent from 32.40 per cent, the release said. Crude petroleum and natural gas inflation rose to 34.41 per cent from 26.99 per cent, with the index at 120.3 against 114.8. Coal and lignite inflation turned positive at 1.57 per cent from minus 0.56 per cent, while electricity inflation moved to minus 1.73 per cent from 1.09 per cent.
The WPI Food Index, with a weight of 24.99 per cent, recorded YoY inflation of 7.05 per cent in August, compared with 6.65 per cent in July, according to the release. Its index was 118.5 in August against 117.1 in July. Food articles inflation stood at 5.67 per cent against 5.44 per cent, and manufacture of food products inflation rose to 9.65 per cent from 8.89 per cent.
The final WPI index for June 2026 was revised to 110.3 from the provisional estimate of 110.2, and June WPI inflation was revised to 9.97 per cent from 9.87 per cent, the release said. The final estimate for June was compiled with a weighted response rate of 99.3 per cent, while the August provisional estimate used an 84.4 per cent weighted response rate.