WPI Inflation Rebounds in December 2025 Amid Rising Prices

Wholesale price inflation rose to 0.83% in December 2025, driven by increased prices in food, non-food articles, and manufactured items. This marks a rebound from negative rates in previous months. Meanwhile, retail inflation rose to 1.33%, and the Reserve Bank of India has adjusted interest rates and economic projections accordingly.

Wholesale price inflation, measured by the Wholesale Price Index (WPI), surged by 0.83% in December 2025, marking a consecutive monthly increase, according to government data released Wednesday. This uptick was fueled by rising prices across food, non-food articles, and manufactured goods.

The WPI inflation rate returned to positive figures in December after two months of deflation, previously recording negative values of -0.32% in November and -1.21% in October. The inflation in manufactured products increased to 1.82%, while deflation in food articles and vegetables eased in December compared to the previous month.

Separate data indicated a rise in retail inflation to 1.33% in the same month. In response, the Reserve Bank of India (RBI) adjusted policy interest rates, citing a 'rare Goldilocks period' of high growth and low inflation, and revised GDP growth projections for the fiscal year to 7.3% from the previous 6.8%.

(With inputs from agencies.)