Wholesale Inflation Turns Positive, Rises to 0.83% in December on Price Uptick

New Delhi | January 14, 2026 India’s wholesale price inflation showed a marginal rise in December 2025, reaching 0.83%, marking the second consecutive month of upward movement, according to government data released on Wednesday. This comes after two months of deflation, with wholesale prices contracting by 0.32% in November and 1.21% in October. The return to positive territory signals a gradual firming up of prices across key sectors of the economy. The Ministry of Commerce and Industry said the increase in wholesale inflation was mainly driven by higher prices of manufactured products, minerals, machinery and equipment, food products, and textiles. Inflation in manufactured goods rose to 1.82% in December from 1.33% in November, while non-food articles such as oilseeds and fibres recorded an inflation rate of 2.95%, up from 2.27% a month earlier. Food prices showed signs of easing pressure compared to November. Deflation in food articles narrowed sharply to 0.43% in December from 4.16% in the previous month. Vegetables, in particular, saw deflation reduce significantly to 3.50%, compared to a steep 20.23% decline in November, indicating some stabilisation in food supply and pricing. Fuel and power continued to remain in deflation, with prices contracting by 2.31% in December, almost unchanged from November. On the retail side, inflation edged up to 1.33% in December from 0.71% in November, largely due to rising food prices, according to data released earlier this week. Meanwhile, the Reserve Bank of India has maintained a supportive stance, having reduced policy interest rates by 1.25 percentage points during the current financial year. Last month, the RBI cut the key policy rate by 25 basis points to 5.25%, calling the current phase a “Goldilocks period” of strong growth and low inflation. The central bank has also lowered its inflation projection for the year to 2% and raised India’s FY26 GDP growth forecast to 7.3%, reflecting confidence in the economy’s momentum. Wholesale Inflation Rebounds: WPI Climbs to 0.83% in December After Two Months of Deflation India’s wholesale price inflation moved back into positive territory in December 2025, rising to 0.83%, according to government data released on January 14, 2026. This marks the second straight month of recovery after wholesale prices had remained in deflation during October and November. The upward movement reflects a gradual increase in prices across several key sectors of the economy. The Commerce and Industry Ministry said the rise was mainly driven by higher prices of manufactured goods, minerals, machinery, food products, and textiles. Inflation in manufactured items increased to 1.82% in December from 1.33% in the previous month, while non-food articles such as oilseeds and fibres also saw faster price growth, indicating stronger demand and cost pressures. Food inflation at the wholesale level, however, showed signs of moderation. Deflation in food articles eased sharply to 0.43% in December compared to 4.16% in November. Vegetable prices, which had seen a steep fall earlier, witnessed a much slower decline, suggesting improving market stability. Fuel and power prices remained in deflation, continuing to offer some relief to overall inflation. The data comes alongside a slight rise in retail inflation, which inched up to 1.33% in December from 0.71% in November, mainly due to higher food prices. With inflation still at comfortable levels, the Reserve Bank of India has maintained an accommodative approach, recently cutting interest rates to support growth. The central bank has projected strong economic momentum ahead, supported by easing inflationary pressures.