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India's Inflation Rebounds to 0.83% in December
15 Jan
Summary
- Wholesale price inflation hit an eight-month high of 0.83% in December.
- Manufactured products saw a significant price increase, contributing to the rise.
- Deflation in food articles narrowed, with vegetables showing a marked improvement.
India's Wholesale Price Index (WPI) inflation returned to positive territory, reaching 0.83% in December 2025. This marks an eight-month high, reversing the deflationary trends seen in October and November 2025. The uptick was largely fueled by increased prices in manufactured products and a significant reduction in the deflation of food articles, particularly vegetables.
The data from the Ministry of Commerce and Industry indicates that manufactured products, which constitute the largest weight in the WPI basket, saw a 0.41% sequential increase. Non-food articles also experienced inflation, while the fuel and power sector remained in deflation. Retail inflation also inched up to a three-month high of 1.33% in December.
Looking ahead, economists anticipate WPI inflation to continue hardening in January and beyond due to unfavorable base effects. Projections suggest WPI could reach 1.5-2.0% in the fourth quarter of FY26. Core WPI, excluding food manufactured items, rose to a 34-month high of 2.0% in December, signaling sustained price pressures.
