Rise In Wholesale Price Inflation Driven By Global Commodity Energy Costs: Government

The increase in wholesale price inflation in June to 9.87% was largely driven by price pressures in items that are more sensitive to global commodity and energy costs, Parliament was informed on Monday.

Minister of State for Finance Pankaj Chaudhary said in the Lok Sabha that the government has been actively undertaking a series of measures to control inflation and mitigate its impact on consumers.

These measures include augmenting buffer stocks for essential food items, strategically selling procured grains in the open market, and calibrating trade policies.

As a result of the government's measures, the retail or Consumer Price Index (CPI)-based inflation rate has been below the 4% target over the last two quarters -- 3.1% (January-March of FY26) and 3.9% (April-June FY'27).

On a year-on-year basis, wholesale price index (WPI)- based inflation increased from 9.68% in May to 9.87% in June.

"The rise in WPI inflation is largely driven by the price pressures in commodities that are more sensitive to global energy and commodity price movements, particularly mineral oils (including petroleum products), food articles, basic metals, chemicals and chemical products," Chaudhary said in a written reply.

He said the government, in consultation with the RBI, determines the CPI retail inflation target once every five years to maintain price stability while keeping in mind the objective of growth.

The government notified on March 25, 2026, the CPI inflation target as 4% with a lower tolerance level of 2% and upper tolerance level of 6%, for the period from April 1, 2026 to March 31, 2031.

India's retail inflation rose to a provisional 4.38% in June 2026, up from 3.93% in May, driven primarily by higher food and transport prices.