India Sees Rebound in Wholesale Price Inflation Amid Manufacturing Surge

Wholesale price inflation reversed its deflationary trend in December 2025, rising to 0.83% due to increased prices in food, non-food articles, and manufactured goods. This shift follows a negative inflation trend in the previous months, prompting economists to predict a continued rise in wholesale prices.

Wholesale price inflation in India rose for the second consecutive month, recording a 0.83% increase in December 2025, according to government data released on Wednesday. The uptick is primarily due to rising costs in food, non-food items, and manufactured products on a month-to-month basis.

This adjustment follows a deflationary phase observed in October and November, when wholesale prices fell by 1.02% and 0.32% respectively. In December 2024, the wholesale price index showed a rise of 2.57% year-on-year, highlighting the fluctuating nature of inflation.

Economists, including Barclays India's Chief Economist Aastha Gudwani, attribute the increase to narrowing deflation in food articles and heightened inflation in manufacturing products. With global commodity prices climbing, and the USD/INR pair under pressure, projections indicate modest advances in wholesale price inflation may persist.

(With inputs from agencies.)