Wholesale inflation holds near 10% as Congress attacks government on price rise

The Congress party has accused the government of downplaying the economic strain on Indian households, with general secretary Jairam Ramesh contrasting Prime Minister Narendra Modi's reassurances with ground realities, saying "the PM keeps saying 'sab changa si' (all is well), but actually 'sab mehenga si' (everything is expensive)".

Four-Month Inflationary Streak

Wholesale price-based inflation climbed to 9.92% in August, up from 9.78% in July, driven by rising costs across food, manufactured goods, and fuel and power, according to government data released on September 14, 2026. Mr. Ramesh pointed out that official figures show the Wholesale Price Index (WPI) inflation has been hovering around 10% for four consecutive months.

Food and Manufacturing Drive Price Surge

Inflation in the food index accelerated to 7.05% in August from 6.65% in July. The manufactured items category recorded WPI inflation of 8.37% in August, a series high and an increase from 8.29% in July. "Prices of all essential commodities have continued their upward rise causing huge hardships to crores of families," Mr. Ramesh said.

Wage Decline Compounds Household Distress

Citing Centre for Monitoring Indian Economy (CMIE) data, the Congress leader highlighted that inflation-adjusted wages have been consistently falling, with a 5.7% drop since April. Rural India has been hit particularly hard, witnessing a massive 9% decline, with rural wages falling even in nominal terms.

West Asia Conflict Fuels Price Pressures

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

Source: The Hindu