Wholesale inflation jumps to 11.39 per cent in September; the RBI governor says markets are too gloomy on the rupee
Wholesale price inflation reached 11.39 per cent in September on costlier fuel, food and manufactured goods (The Hindu, Moneycontrol, NDTV Profit). RBI Governor Sanjay Malhotra told Moneycontrol that markets are overly pessimistic on the rupee (Moneycontrol, News18), and The Economic Times reports the RBI is open to more steps against speculation in the currency. The Hindu reports the rupee closed at 95.17 to the dollar, up 19 paise, and shares closed lower on elevated crude and rising inflation; at midday the Nifty 50 was below 22,700 (Moneycontrol, NDTV Profit). Reuters says US consumer prices accelerated in September on costlier gasoline, with core inflation firmer, and Mint puts the US annual rate at 3.7 per cent. Daly said rate hikes are likely but not urgent, and Bowman said there is time to wait and see (Reuters). US shares fell on Wednesday, led by technology and chip stocks (Bloomberg, Reuters), and the Russell 2000 sank into a correction (Bloomberg).
Wholesale prices measure what firms pay before the shop margin, so a jump of this size often reaches shelves later. Dear oil and a weak rupee both raise import costs, and a hotter US inflation reading raises the odds of further Fed rate hikes, which can pull money out of emerging markets such as India.
Sugar has risen more than 10 per cent in six days (Hindustan Times) and up to 17 per cent by Moneycontrol's count, on festive demand and tight supply. The government says it has no plan to cut import duties on pulses for now (Mint). Gold has fallen about ₹3,000 per 10 grams in three days (Dainik Bhaskar), which helps festival buyers.
The RBI governor says markets are overly pessimistic on the rupee and that more steps are possible against speculation.
The Hindu ties the fall in shares to elevated crude and rising inflation, and the Fed's divided officials leave the path of US rates open (Reuters).
Do not read 11.39 per cent as a retail number: retail inflation for September was 5.54 per cent, as we reported on 13 October. Watch the rupee against the 95 mark, crude, and whether the RBI announces further curbs. The closing levels of the Nifty 50 and the rupee are not confirmed by two sources, so we leave the ears blank.
DailyDrop India edition No. 11 · Morning · THU., OCT. 15, 2026