New Delhi: Wholesale price inflation rose to 9.68% in May 2026 from 8.26 % in April, according to data released by the Ministry of Commerce and Industry. The reading is the first under the revised Wholesale Price Index (WPI) series, which uses 2022-23 as the base year.The data implies that businesses in the country face significantly higher input and output prices than they did a year earlier. At close to 10%, the WPI figure is significantly high.The latest data also shows that the increase in inflation was not limited to fuels, though that is where the highest rise has been noted. Primary goods and manufactured articles also showed a steep rise in inflation.Fuel and power inflation increased to 30.33% in May from 24.89% in April, reported Business Standard. Inflation in crude petroleum and natural gas rose the highest, to 61.51% from 56.31 %, while mineral oils, including petrol, diesel and LPG, recorded inflation of 49.82%.Meanwhile, primary articles inflation rose to 4.99% in May from 3.78% a month earlier. Inflation in manufactured products increased to 7.48% from 6.68%.The risk from all these trends is that the costs may eventually be passed on to consumers. Though WPI and the Consumer Price Index do not measure the same items, at very high rates of price rise in wholesale goods, especially when it is spread over a large variety of items, the trend is an indicator of future consumer inflation.The WPI food index inflation rate rose to 4.49% in May from 3.11% in April. The government data shows, more than a rise, an accelerating trend in wholesale inflation, going by the WPI index.WPI Index and Inflation Rate for All Commodities. Source: PIB, Ministry of Commerce and IndustryAnother outcome of rising inflation rates is that it boosts the nominal GDP without necessarily a commensurate increase in economic activity or even taking into account a slowdown. Tax collections could rise, too, as a result, creating spillover effects on job creation and wages and salaries.New producer price indexThe government also released India’s first Producer Price Index (PPI) under a new series. That is, the government updated the base year and basket of goods and their relative weights so that the inflation index better reflects the current situation in the economy.The output PPI for all commodities showed annual inflation of 9.38% in May – again pushing against the 10% mark – compared with 8.06% in April. Put differently, the prices that Indian producers received for their goods were, on average, 9.38% higher in May 2026 than a year ago. What sold in May 2025 for Rs 100 is now selling at Rs 109.38. This is what refers to the price pressure at the factory gates – more revnue for sellers, but also more costs that might be passed through the supply chain to consumers at the end.Major Group-Wise contribution to Inflation. Source: PIB, Ministry of Commerce and Industry.Since the PPI and the WPI are close to each other, at 9.38% and 9.68%, respectively, it is a strong indication that the producer and wholesale-level price pressures are very similar. The government has said India will phase out the WPI over the next five years and transition to the PPI.The PPI increases the total number of items measured for price trends from 697 to 957, includes renewable and solar energy within the electricity matrix, .Among the four major PPI groups, inflation stood at 4.58% for agriculture, forestry and fishing, 18.97% for mining and quarrying, 11.28% for manufactured products and minus 1.96% for electricity.The government also released a trial input PPI for manufacturing and a quarterly services PPI covering banking, securities transactions, insurance, pension fund management, railways, air passenger transport and telecommunications.