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India’s Wholesale Inflation Rises to 0.83% in December After Two Months of Deflation

A firmer core near 2% with strengthening factory prices signals building input pressures under an easier RBI stance.

Employees work on the assembly line at the Ford River Rogue complex, Tuesday, Jan. 13, 2026, in Dearborn, Mich. (AP Photo/Evan Vucci)
People shop at a grocery store in Brooklyn on Dec. 12, 2025 in New York.
Vegetables are pictured at a produce shop at Reading Terminal Market after the inflation rate hit a 40-year high in January, in Philadelphia, Pennsylvania, U.S. February 19, 2022. REUTERS/Hannah Beier/File Photo
FILE - A woman checks gas prices before she fills up her vehicle's gas tank at a gas station in Wheeling, Ill., Wednesday, Jan. 7, 2026. (AP Photo/Nam Y. Huh)

Overview

  • Government data show WPI inflation at 0.83% year-on-year in December 2025, reversing November’s -0.32% and October’s -1.21%.
  • Manufactured products led the upturn, with inflation in the category rising to 1.82% as machinery, minerals, food products and textiles climbed.
  • Food articles stayed in deflation but the contraction narrowed to 0.43%, with vegetables at -3.50%, while fuel and power remained in deflation at about -2.31%.
  • Bank of Baroda estimates core WPI near 2% in December, pointing to emerging underlying price pressures even as headline wholesale inflation stays subdued versus a year earlier.
  • The print follows CPI rising to 1.33% in December and comes after the RBI’s cumulative 1.25 percentage point rate cuts, a lower 2% inflation projection and a higher 7.3% FY26 GDP forecast, with analysts cautioning on commodity and currency risks.