India's WPI Jumps 9.9% as Food, Energy Costs Pressure RBI

India's wholesale inflation hit 9.9% in June from a year earlier, government data showed Tuesday, a day after the consumer-price index rose 4.4% to a 17-month high. Both readings signal that price pressures are broadening beyond the Reserve Bank of India's 4% target.

Supply disruptions from the West Asia conflict drove the surge. Bulk mineral oil prices jumped 27% in June after a 30% rise in May, as traffic through the Strait of Hormuz remained intermittent. Food prices also accelerated at the wholesale and retail levels, the data showed.

RBI flagged the incline last month, raising its inflation projection for 2026-27 to 5.1% from 4.6%. If renewed US-Iran hostilities choke supply routes, the number could move closer to the 6% tolerance limit, Mint reported. The central bank may need to re-examine its policy stance, the report added.