India's WPI inflation surged to 11.39% in September, a series‑high that eclipses the 9.92% peak seen a month earlier. Food prices climbed to 8.66%, while manufactured goods nudged 9.76% and fuel and power shot up to a staggering 25.85%.
The fuel surge reflects a 3.92‑point jump, mirroring the sharp rise in global oil prices after the West Asia conflict forced a temporary blockade of the Strait of Hormuz. Manufactured goods, too, edged higher, driven by spikes in steel and metal costs.
Barclays analyst Arun Gupta warned that “the continued climb in global commodity prices will likely lift wholesale and producer price inflation further.” He cited the higher energy and fertiliser costs spilling into food and commodity prices.
The Reserve Bank of India, after raising policy rates by 25 basis points to 5.50% last week, is watching the data closely. Retail inflation, meanwhile, hit a 23‑month high of 5.54% in September, up from 4.83% in August.
ICRA’s Rahul Agrawal projects WPI inflation to edge toward 12% in October, with double‑digit prints persisting into the third quarter of FY2027. He added that an adverse base effect may keep the numbers elevated.
In Delhi’s Chandni Chowk market, shopkeeper Anju Sharma notes that the price of rice has risen by 14% in the last month, forcing her to raise shelf prices to stay afloat. Her story echoes a broader trend of rising costs that ripple through the economy.