The WPI inflation accelerated due to broad-based increase seen across segments, though fuel & power contributed substantially, due to firming of global crude price as a consequence of the West Asia conflict. Low base also contributed to higher inflation, Megha Arora, Director, India Ratings and Research, said.
Fuel & power have been recoding an inflationary trend since March 2026 – the segment recorded an inflation of 24.71 per cent in April 2026, 1.05 per cent in March 2026. Inflation in petrol, diesel and LPG witnessed at least a 7-fold rise underlining supply constraints, she noted.
The impact of high global crude price was evident in the primary articles category as well as manufactured products. The former was driven by crude petroleum and natural gas, oil seeds and minerals. Crude petroleum price in particular increased by 88.06 per cent in April 2026, Arora added.
In the manufacturing group, while several sub-groups witnessed inflation, food products, basic metals, chemicals, and textiles exerted an upward pressure. High global metal prices, potential El Nino effect and overall higher cost of imported inputs is likely to keep inflation in this segment high in the coming months.
India Ratings expects headline inflation is likely to further rise to 9.0 per cent in May 2026, due to transmission of high energy prices and via its users, ie. the manufacturing sector.
WPI is expected to be higher than the Consumer Price Index (CPI) on account of higher weight of fuels in the index, as well as delayed transmission of high crude price to consumers, as the government and the oil marketing companies absorbed most of it until now, it added.
The West Asia conflict leading to higher price of crude and its derivatives, as well as potential El Nino effect to continue to pose the upside risk to inflation, India Ratings said.
More details: https://www.pib.gov.in/PressReleaseDetail.aspx?PRID=2260905®=3&lang=1
