Wholesale price inflation in India moved higher for the second consecutive month in December 2025, rising to0.83%, according to government data released on Wednesday. This marks a return to positive inflation after two months of deflation, signalling that price pressures are gradually building up at the wholesale level.
The Wholesale Price Index (WPI)-based inflation had been in negative territory at(-)0.32% in Novemberand(-)1.02% in October. In comparison, wholesale inflation stood at2.57% in December 2024, indicating a relatively softer price environment this year.
Food prices presented a mixed picture during the month. Wholesale food inflation remainedflat in December, compared to a sharp2.6% decline in November.
Vegetable prices continued to fall on a year-on-year basis, but the pace of decline moderated. Vegetable prices dropped3.5% in December, easing significantly from the steep20.23% fall recorded in November, suggesting some stabilisation in supply conditions.
Manufactured products, which carry the highest weight in the WPI basket, recorded a sharper rise in prices. Inflation in this category increased to1.82% in December, up from1.33% in November. The uptick reflects rising input and cost pressures across several industrial goods.
In contrast, fuel and power prices stayed in deflationary territory. Prices in this segment declined2.31% year-on-year in December, marginally deeper than the2.27% fallrecorded in the previous month, providing some relief on the cost front.
Overall, the December data suggests that wholesale price pressures are gradually firming up, led by manufactured goods and selective food items, even as fuel and vegetables continue to moderate inflation. Economists will closely track these trends in the coming months, as movements in wholesale prices can eventually influence retail inflation and monetary policy decisions.
