Wholesale Inflation Rises After Two Months, Hits 8-Month High in December

New Delhi: After two months of negative readings, wholesale inflation in India has turned positive again, reaching an eight-month high in December. Rising prices of food items and manufactured goods contributed to the uptick, according to the Ministry of Commerce and Industry.

The Wholesale Price Index (WPI)-based inflation stood at 0.83% in December 2025, compared to 2.57% in December 2024. In the previous months, inflation had remained negative, at -1.02% in October and -0.32% in November.

The ministry attributed the December increase primarily to higher prices of minerals, machinery, textiles, and manufactured food products.

Food and Non-Food Inflation Trends

• Food inflation rose to -0.43% in December, up from -4.16% in November, with wholesale prices of grains, pulses, and vegetables seeing significant increases.
• Manufactured goods inflation climbed to 1.82%, compared to 1.33% in November.
• Non-food items recorded a 2.95% rise, up from 2.27% the previous month.

Expert Insights
Rajni Sinha, Chief Economist at CareEdge, noted, “Overall, wholesale inflation remains at a comfortable level. Favorable agricultural output, positive base effects, and adequate reservoir levels should help limit food price pressures in the coming months.”

She added that due to lower base effects last year, WPI may see some increase going forward, but it is expected to remain moderate, averaging around 0.4% for the current fiscal year.