India’s wholesale inflation moved back into positive territory in December 2025, rising to 0.83 percent, compared with -0.32 percent in November, according to data released by the Ministry of Commerce and Industry on January 14.
The turnaround was mainly driven by higher prices in manufactured goods, minerals and machinery, indicating a gradual firming up of cost pressures at the producer level.
The Wholesale Price Index (WPI) tracks price changes at the wholesale or producer level, before goods reach consumers. While retail inflation (CPI) reflects what households pay, WPI shows input costs faced by manufacturers and businesses.
A sustained rise in WPI often signals future inflation at the retail level, as companies may pass on higher costs to consumers. It is also closely watched by policymakers, as it reflects trends in industrial demand, supply conditions and profit margins.
According to the government, the positive inflation print in December was mainly due to rising prices in: Other manufacturing, minerals, machinery and equipment, food products, and textiles.
In November, wholesale prices had fallen for the second straight month, following a sharp drop in October — the steepest since July 2023 — largely because of falling food prices. That deflationary trend eased in December.
The WPI food index edged up in December, with inflation at 0 percent, compared with -2.60 percent in November.
Sharp price increases were seen in oilseeds (14.82 percent) and minerals (11.86 percent). Prices of milk, eggs, meat, fish and fruits also rose during the month.
However, vegetables continued to remain cheaper. Prices of vegetables fell 3.50 percent, pulses dropped 13.88 percent, and wheat declined 1.58 percent. Onion and potato prices recorded the steepest deflation, falling 54.40 percent and 38.21 percent, respectively.
Prices of primary articles, which include farm produce and minerals, increased overall, though crude petroleum and natural gas prices dipped slightly.
Fuel and power inflation rose due to higher electricity tariffs and increases in coal and mineral oil prices.
Manufactured products saw a mild rise. Prices increased in 13 out of 22 manufacturing groups, including metals, chemicals and textiles, while eight groups — such as rubber and plastic goods, electronics, paper products and beverages — recorded a decline.
Meanwhile, retail inflation (CPI) climbed to 1.66 percent in December from 0.71 percent in November. Higher prices of personal care products, meat, fish, eggs, spices and sugar drove the increase.
Personal care items saw the sharpest jump, rising 28.07 percent, highlighting emerging pressure points in consumer inflation as well.