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15 August 2026

WPI inflation softening

The Wholesale Price Index is a key macroeconomic indicator frequently used in UPSC Mains to assess inflationary trends and economic policy effectiveness.

1 min read Day 4 of 4 1 questions 1 prelims

Notes

  • Wholesale Price Index (WPI) inflation eased to 9.78% in July from 9.87% in June.
  • This marks the first month-on-month decline in WPI inflation since October 2025.
  • The primary driver for the moderation was a decrease in fuel and power inflation.
  • Inflation in primary articles and manufactured products showed an accelerating trend during the same period.

Part of a longer story

This is day 4 of 4 in Wholesale and Retail Inflation Trends, which has been running since 15 July 2026. Reading it whole is usually worth more than reading today alone — the exam asks how something developed.

Questions

  1. Analyze the factors contributing to the recent moderation in WPI-based inflation and discuss its implications for the broader macroeconomic stability of the Indian economy. 150 words
    Attempt this — 150 words in 8 min
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Prelims

  1. Which of the following components contributed to the softening of WPI inflation in July?