New Delhi: India's Wholesale Price Index-based inflation rose sharply to series-high of 11.39 percent in September, compared to 9.92 percent in August, on rising prices of food, manufactured items, and fuel and power, government data showed on Wednesday.

Inflation in the food index rose to 8.66 percent in September from 7.05 percent in August.

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In manufactured items, WPI inflation was at a series high of 9.76 percent, higher than 8.37 percent in August.

In the fuel and power basket, Wholesale Price Index (WPI)-based inflation was 25.85 percent in September, compared to 22.93 percent in the previous month.

"With international energy and metal prices elevated, wholesale and producer price inflation may accelerate in coming months," Barclays said in a research note.

The WPI has been on an upward trajectory since the beginning of this fiscal year as the West Asia war and the resultant blockade of the Strait of Hormuz, through which the majority of crude oil is imported into India, pushed up global crude and fertiliser costs with a spillover effect on food and commodity prices.

ICRA, Principal Economist, Rahul Agrawal, said elevated global commodity inflation pushed up the WPI inflation to a series-high. WPI-food inflation rose to a 23-month high in September 2026 amid a significant hardening in prints across the cereals, pulses, fruits and vegetables segments.

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Amid hardening food inflation and no respite so far on global energy and commodity prices, ICRA expects the WPI inflation to inch up further to 12 percent in October 2026, with the adverse base also playing spoilsport. WPI inflation prints are expected to remain elevated, in double digits, through third quarter of FY2027, Agrawal said.

Also output producers price index (OPPI) inflation rose 11.4 percent y/y in September from 9.8 percent in August. The rise in output PPI inflation continues to be driven by higher manufacturing and mining PPI inflation, Barclays said.

"As global energy prices remain elevated amid the Middle East conflict, along with the flare up in domestic food prices, we expect WPI inflation to rise further in coming months," it added.

Industry chamber PHDCCI SG & CEO, Ranjeet Mehta, said the latest WPI figures point to inflationary pressures across several stages of production. While wholesale price movements do not translate one-to-one into retail inflation, their persistence could influence corporate margins, working-capital requirements and investment decisions.

The Reserve Bank of India's monetary policy committee, last week hiked benchmark policy rates by 25 bps to 5.50 percent.

Retail inflation data released earlier this week showed inflation rose to a 23-month high of 5.54 percent in September from 4.83 percent in August, driven by a sharp rise in food prices.

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