14 Jan 2026, Wed

The country suffered a shock on the inflation front; Wholesale inflation increased for the second month in December, know the details

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WPI Inflation December 2025: Wholesale inflation continued to rise for the second consecutive month and reached 0.83 percent in December 2025. This increase was recorded due to monthly increase in prices of food items, non-food items and manufactured goods. This information was received from government data released on Wednesday.

What do the figures say?

According to PTI language inputs, Wholesale Price Index (WPI) based inflation stood at minus 0.32 percent in November and minus 1.21 percent in October. In contrast, wholesale inflation in December 2024 was 2.57 percent. The Industry Ministry said in the statement, the inflation rate increased in December 2025 mainly due to increase in prices of other manufacturing, minerals, machinery and equipment manufacturing, manufacturing of food products and textiles etc.

According to WPI data, food prices declined by 0.43 percent in December. Whereas in November this rate was 4.16 percent. The inflation rate of vegetables declined by 3.50 percent in December, whereas it was 20.23 percent in November.

In case of manufactured products, inflation stood at 1.82 percent in December as against 1.33 percent in November 2025. Inflation in the non-food items category stood at 2.95 percent in December. Whereas in November it was 2.27 percent. Inflation rate in fuel and power sectors stood at 2.31 percent in December while it was 2.27 percent in November.

Increase in prices of kitchen essentials

Retail inflation rose to a three-month high of 1.33 percent in December last month due to increase in prices of kitchen essentials including vegetables, eggs and pulses. Inflation in November was 0.71 percent. Before this, the previous high level of 1.44 percent was recorded in September.

The government had released figures in this regard this week itself. The Reserve Bank of India (RBI) keeps an eye on retail inflation. So far in the current financial year, the Central Bank has reduced the policy rate repo by 1.25 percent, which is now 5.5 percent.

RBI estimate

Last month, RBI had reduced the inflation estimate for the current financial year to two percent from the earlier 2.6 percent. The Reserve Bank of India has increased its estimate of GDP growth for the financial year 2025-26 to 7.3 percent from the earlier 6.8 percent. India had registered a growth of 8.2 percent in the July-September quarter and 7.8 percent in the April-June quarter.

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