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Below the Quote on WPI by Rahul Agrawal, Principal Economist, ICRA Ltd

"The WPI inflation eased marginally to 9.8% in July 2026 from 9.9% in June 2026 and slightly undershot our estimate (+10.0%) for the month. The moderation was not broad-based and was entirely led by the fuel and power group whereas all the other groups witnessed a hardening in their inflation prints in July 2026 vis-à-vis June 2026.

WPI-food inflation rose to a 19-month high of 6.6% in July 2026 from 6.1% in June 2026, largely led by a broad-based uptick across manufactured food items and most primary food articles barring fruits and vegetables. Besides, core WPI inflation hardened to a series high of 8.2% in July 2026 from 7.5% in June 2026, amid an uptick in prints across 16 of the 21 sub-sectors. 

Looking ahead, we anticipate a larger easing in the WPI inflation to below 9.5% in August 2026, after peaking at 9.9% each during May-June 2026. Nevertheless, prints are likely to remain elevated through much of the year, with an average WPI inflation forecast of around 8.5% for FY2027, feeding into a high nominal GDP growth figure as well."

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