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Below the Perspective on WPI Data by Ms. Rajani Sinha, Chief Economist, CareEdge Ratings 

“The WPI inflation as per the revised series with base year 2022-23, accelerated to a higher-than-expected 9.7% in May 2026 from 8.3% in the previous month. While there has been an uptick in inflation across all major groups, the increase is notable for fuel & power and manufactured goods. This reflects the impact of the West Asia crisis on wholesale prices. With the positive developments around the West Asia conflict, global energy prices have seen significant cooling. However, the situation remains fluid despite the recent developments. So far, OMCs and the government have absorbed much of the rise in crude prices, however the future trajectory of domestic crude oil prices will depend on the evolving global factors. Additionally, concerns around a higher probability of an El Niño event this year pose upside risks to food inflation. Against this backdrop, we expect WPI inflation to average around 7.8% in FY27 assuming Brent crude oil prices average around USD 90/bbl.

In addition to the WPI, the government has also launched the Producer Price Indices (PPIs) for the first time. In line with the WPI inflation, the output PPI increased to 9.4% in May 2026 from 8.1% in April. Most heads of services PPI remained benign in Q4 FY26, reflecting the fact that the current surge in inflationary pressures is supply driven and not demand driven. Overall, the introduction of the output PPI, trial input PPI, and the services PPI is a positive step towards aligning the domestic price indices with the global practices.”

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