Nifty and Sensex Fall 6% in September Series as Midcaps Drop 7%

India’s wholesale price index inflation rose to 3.2% in September from 2.8% in August, driven by higher fuel and power costs, according to data released by the Office of the Economic Adviser. Food article inflation eased during the month, partially offsetting the increase at the headline level.

September 2026 WPI Data: Headline, Food, Fuel and Manufactured Products

Why Did WPI Inflation Rise From 2.8% to 3.2% in September?

Fuel and power were the primary driver of the headline increase. The sub-index rose sharply to 8.2% in September from 6.1% in August, reflecting the continued pass-through of elevated global energy prices into wholesale-level fuel costs.

Manufactured products inflation also edged higher to 1.8% from 1.6%, suggesting some modest cost pressure building in the industrial segment.

Food Articles and Primary Goods: Which Categories Pulled Inflation Lower?

Food articles provided the main offset. Inflation in this category eased to 6.5% from 7.2% in August, reflecting some moderation in vegetable and cereal prices through the month.

Primary articles as a whole also softened marginally, declining to 4.1% from 4.4%, as the food-led easing outweighed other components within the broader primary category.

WPI at 3.2% vs CPI at 4.8%: Why the Two Indices Are Diverging

WPI at 3.2% is tracking below CPI, which stood at 4.8% in August. The gap reflects differences in composition: WPI assigns higher weight to fuel and manufactured goods, while CPI is more sensitive to food and services, which have stayed elevated through the current inflationary cycle.

The fuel and power divergence is particularly notable. Global energy price movements feed into WPI more directly through fuel-linked items, while the CPI fuel category reflects retail prices that are subject to government price management.

Final Outlook

Source: Moneycontrol