Wholesale Price Inflation Rises to 0.83% in December 2025
New Delhi- Wholesale price inflation continued its upward trend, reaching 0.83% in December 2025, driven by increased prices of food, non-food articles, and manufactured items on a month-on-month basis, as per government data released on Wednesday.
The Wholesale Price Index (WPI) inflation turned positive in December after experiencing deflation in the previous two months.
In November and October, the inflation rate was negative at (-) 0.32% and (-) 1.21% respectively.
Comparatively, WPI inflation stood at 2.57% in December 2024.
The Ministry of Industry stated, “The positive inflation rate in December 2025 is primarily due to the rising prices of other manufacturing, minerals, machinery and equipment manufacturing, food products manufacturing, textiles, and more.”
According to WPI data, deflation in food articles was 0.43% in December, down from 4.16% in November.
Vegetable prices witnessed a deflation of 3.50% in December, a significant decrease from 20.23% in November.
In the manufactured products category, WPI inflation rose to 1.82%, up from 1.33% in November 2025.
Non-food articles showed an inflation rate of 2.95% in December, as opposed to 2.27% in November.
Deflation persisted in the fuel and power sectors at 2.31% in December, slightly higher than 2.27% in the previous month.
Recent data revealed that the country’s retail inflation increased to 1.33% in December, up from 0.71% in November, driven by the surge in food prices.
The Reserve Bank of India (RBI) has lowered policy interest rates by 1.25 percentage points in the current fiscal year due to low inflation rates.
Last month, the RBI revised the inflation projection for the current fiscal to 2%, down from 2.6% estimated earlier, as the economy continues to experience rapid disinflation.
The RBI primarily monitors retail inflation to determine benchmark interest rates.
In the previous month, the RBI reduced key policy interest rates by 25 basis points to 5.25%, citing a “rare Goldilocks period” in the Indian economy characterized by high growth and low inflation.
The RBI has raised the GDP growth projection for FY26 to 7.3%, up from the previous estimate of 6.8%. India recorded growth rates of 8.2% in the September quarter and 7.8% in the June quarter.
BUSINESS NEWDELHI
