Page 24 - Policy Economic Report- June'26

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

Among the major CPI groups, inflation remained highest in Personal Care, Social Protection and
Miscellaneous Goods & Services (18.46%), followed by Restaurants & Accommodation Services (5.75%),
while inflation in Housing, Transport, Health, and Information & Communication remained relatively
subdued.

Wholesale Prices and Producer Price Indices (Base Year: 2022-23)

Wholesale Price Inflation (WPI) accelerated during May 2026, reflecting rising cost pressures across the
production chain, primarily driven by higher energy prices and increased manufacturing costs. According
to the revised WPI series with 2022–23 as the new base year, annual wholesale inflation increased to 9.68
% in May 2026 from 8.26 % in April 2026. The rise was largely attributed to higher prices of mineral oils,
crude petroleum and natural gas, chemicals and chemical products, and basic metals, highlighting the
transmission of global commodity and energy price increases into domestic producer prices.

Among the major commodity groups, Fuel and Power remained the principal driver of wholesale inflation,
recording a year-on-year inflation rate of 30.33%, compared with 24.89% in April. Inflation
in Manufactured Products increased to 7.48 % from 6.68 %, indicating that higher input costs were
gradually being passed on through industrial production. Primary Articles registered inflation of 4.99 %,
up from 3.78 % in the previous month, while the WPI Food Index rose to 4.49 % from 3.11 %, reflecting
higher prices of food articles and manufactured food products.

Figure 12: WPI Index and Inflation Rate for All Commodities

Source: PIB

A significant policy development during the month was the launch of the revised WPI (Base Year: 2022–
23) along with the introduction of a comprehensive Producer Price Index (PPI) framework. The revised
WPI better reflects the current structure of the Indian economy by expanding the commodity basket

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