India’s Wholesale Inflation Jumps to 11.39% in September as Fuel, Food and Manufacturing Costs Surge

India’s wholesale inflation accelerated sharply to 11.39 per cent in September, from 9.92 per cent in August, as rising prices of food, fuel and manufactured goods intensified cost pressures across the economy, according to government data released on Wednesday.

The latest figures point to mounting pressure on businesses and supply chains, with higher input costs potentially translating into more expensive goods for consumers in the coming months.

Inflation in the fuel and power category climbed to 25.85 per cent in September, compared with 22.93 per cent in August, reflecting the impact of higher energy costs. Inflation in the food index also accelerated to 8.66 per cent, up from 7.05 per cent in the previous month, adding to concerns over the cost of essential commodities.

The biggest warning sign came from manufactured products, where wholesale inflation rose to a series high of 9.76 per cent, against 8.37 per cent in August. Higher prices in this category could increase production costs for industries and put pressure on businesses that may eventually pass some of the burden on to buyers.

The Commerce and Industry Ministry identified mineral oils, food articles, crude petroleum and natural gas, coal and lignite, basic metals, chemicals, textiles, rubber and plastic products, and electrical equipment among the key drivers of wholesale inflation in September.

The upward trend has persisted since the beginning of the current financial year, with the West Asia conflict and the resulting blockade of the Strait of Hormuz contributing to higher global crude oil and fertiliser costs. The disruption has also had spillover effects on food and other commodity prices.

The wholesale inflation surge comes alongside a rise in consumer-level price pressures. Retail inflation climbed to a 23-month high of 5.54 per cent in September, from 4.83 per cent in August, driven largely by a sharp increase in food prices.

Meanwhile, the Reserve Bank of India’s Monetary Policy Committee raised the benchmark policy rate by 25 basis points to 5.50 per cent last week, signalling a tighter policy stance amid rising inflationary pressures.

With wholesale and retail inflation both moving higher, the coming months will be crucial in determining whether elevated energy and commodity costs feed further into household expenses and business prices.