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Wholesale terms ostentation extended upward momentum for the 2nd consecutive month, signaling astatine 0.83% successful December 2025, driven by an uptick successful prices of food, non-food articles, and manufactured items connected a month-on-month basis, authorities information showed connected Wednesday (January 14, 2026).
Wholesale Price Index (WPI)-based ostentation returned to affirmative successful December, aft witnessing a deflationary inclination successful the erstwhile 2 months.
In November and October, the gait of terms emergence was antagonistic astatine (-) 0.32% and (-) 1.21%, respectively.
In contrast, WPI ostentation was 2.57% successful December 2024.
“Positive complaint of ostentation successful December 2025 is chiefly owed to an summation successful prices of different manufacturing, minerals, manufacture of machinery and equipment, manufacture of nutrient products, and textiles, etc.,” the Industry Ministry said successful a statement.
According to WPI data, deflation successful nutrient articles was 0.43% successful December, arsenic against 4.16% successful November.
In vegetables, deflation was 3.50% successful December, compared to 20.23% successful November.
In the lawsuit of manufactured products, WPI ostentation inched up to 1.82%, arsenic against 1.33% successful November 2025.
The non-food articles class showed an ostentation of 2.95% successful December, against 2.27% successful November.
Negative ostentation oregon deflation continued successful the substance and powerfulness sectors, astatine 2.31% successful December, against 2.27% a period ago.
Data released earlier this week showed the country’s retail ostentation inched up to 1.33% successful December, from 0.71% successful November, driven by rising nutrient prices.
The Reserve Bank of India (RBI) has reduced argumentation involvement rates by 1.25 percent points successful the existent fiscal twelvemonth arsenic ostentation remained low.
Last month, RBI importantly lowered the ostentation projection for the existent fiscal to 2% from 2.6% estimated earlier, arsenic the system continues to witnesser accelerated disinflation.
The RBI chiefly tracks retail ostentation for deciding connected benchmark involvement rates.
Last month, the RBI chopped cardinal argumentation involvement rates by 25 bps to 5.25%, saying that the Indian system is successful a “rare Goldilocks period” marked by precocious maturation and debased inflation.
The RBI has raised its FY26 GDP maturation projection to 7.3%, from an earlier estimation of 6.8%. India recorded an 8.2% maturation successful the September quarter, and 7.8% successful the June quarter.
