Wholesale Price Inflation Sees Rise in December 2025: What You Need to Know

In December 2025, wholesale price inflation rose to 0.83%, marking a shift from previous months of deflation. This increase is driven by higher prices in food, non-food items, and manufactured goods. The Reserve Bank of India has adjusted its inflation projections and interest rates in response to these trends. Discover the implications of these changes for the Indian economy and what they mean for consumers.

By Narendra Chaudhary Jan 14, 2026, 13:29 IST

Inflation Trends in December 2025

New Delhi: The wholesale price inflation has continued its upward trend for the second consecutive month, reaching 0.83% in December 2025. This increase is attributed to rising prices in food, non-food items, and manufactured goods, as reported by government statistics on Wednesday.

After experiencing deflation in the previous two months, the Wholesale Price Index (WPI) inflation has returned to positive territory in December.

In October and November, the inflation rates were negative, recorded at (-) 1.21% and (-) 0.32%, respectively.

In comparison, WPI inflation stood at 2.57% in December 2024.

The industry ministry noted that the positive inflation rate in December 2025 is largely due to price increases in various sectors, including manufacturing, minerals, machinery, food products, and textiles.

WPI data indicates a deflation of 0.43% in food articles for December, a significant decrease from the 4.16% deflation seen in November.

Vegetable prices also saw a deflation of 3.50% in December, down from 20.23% in the previous month.

For manufactured goods, WPI inflation rose to 1.82%, compared to 1.33% in November 2025.

The non-food articles category experienced an inflation rate of 2.95% in December, up from 2.27% in November.

However, deflation persisted in the fuel and power sectors, recorded at 2.31% in December, slightly higher than the 2.27% from the previous month.

Earlier data revealed that the country's retail inflation increased to 1.33% in December, up from 0.71% in November, primarily due to rising food prices.

The Reserve Bank of India (RBI) has lowered policy interest rates by 1.25 percentage points this fiscal year as inflation remains subdued.

Recently, the RBI revised its inflation forecast for the current fiscal year down to 2% from the previously estimated 2.6%, as the economy continues to experience rapid disinflation.

The RBI focuses on retail inflation when determining benchmark interest rates.

Last month, the RBI reduced key policy interest rates by 25 basis points to 5.25%, citing that the Indian economy is currently in a 'rare Goldilocks period' characterized by robust growth and low inflation.

The RBI has also raised its GDP growth projection for FY26 to 7.3%, up from an earlier estimate of 6.8%. India recorded an impressive growth of 8.2% in the September quarter and 7.8% in the June quarter.