WPI inflation surges to 9.7% in May, driven by soaring fuel prices and new base year
Wholesale Price Index (WPI) inflation in India surged to 9.7% in May 2026, marking the highest rate since at least April 2024, primarily driven by soaring prices of crude oil, natural gas, and mineral oils, exacerbated by the West Asia crisis. The Ministry of Commerce and Industry released a new WPI series with an updated base year of 2022-23 and an expanded scope of goods, making historical comparisons prior to April 2024 unavailable. Inflation in crude oil and natural gas jumped to 61.5%, while mineral oils accelerated to 49.8%, partly due to a low base effect from the previous year. The government also announced plans to phase out the WPI within five years, replacing it with the Producer Price Index (PPI) to align with global best practices and IMF recommendations.
Key Points
- WPI inflation surged to 9.7% in May 2026, primarily due to rising fuel prices, including crude oil, natural gas, and mineral oils.
- The Ministry of Commerce and Industry released a new WPI series with an updated base year of 2022-23 and a wider ambit of goods.
- The high inflation rate is partly attributed to the West Asia crisis and a low base effect from the previous year.
- The government plans to phase out WPI within five years, replacing it with the Producer Price Index (PPI) to align with global best practices.
- New indices like Output Producer Price Index (OPPI) and Service Producer Price Index (Service PPI) for various services were also released.
Exam Facts
- WPI inflation rate in May 2026: 9.7%.
- New WPI base year: 2022-23.
- Crude oil and natural gas inflation in May 2026: 61.5%.
- WPI to be replaced by Producer Price Index (PPI) in five years.
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