Wholesale inflation hits 9.92% in August on fuel, food prices

India's wholesale price index-based inflation rose to 9.92% in August, from 9.78% in July, driven by higher prices of food, fuel, and manufactured items, government data showed on Monday. The Commerce and Industry Ministry said mineral oils, food articles, basic metals, chemicals, and chemical products were the major drivers.

Inflation in the food index rose to 7.05% in August from 6.65% in July. The fuel and power basket saw 22.93% inflation, while manufactured products hit a series high of 8.37%. The WPI has risen since the start of the fiscal year, with the West Asia war and Strait of Hormuz blockade pushing up global crude and fertiliser costs, which spilled over into food prices, The Hindu reported. The RBI kept policy rates unchanged at 5.25% last month and projected retail inflation at 5% for FY27, citing deficient monsoon and El Nino.