What is the Current Status of India’s WPI Inflation for December?
Synopsis
Key Takeaways
- WPI inflation for December 2025 stands at 0.83%.
- Food inflation remains unchanged at 0%.
- The manufactured goods sector showed a price increase of 0.41%.
- RBI revised its inflation forecast down to 2% for the financial year 2025-26.
- Repo rate decreased to 5.25% from 5.5%.
New Delhi, Jan 14 (NationPress) The wholesale price inflation rate in India has been assessed at 0.83 percent for December 2025, representing an increase compared to the same month in the previous year. This uptick is largely attributed to the rise in prices of manufactured goods and minerals, as reported by the Ministry of Commerce and Industry on Wednesday.
The inflation for food items stood at 0 percent, indicating no change in wholesale food prices for December when compared to the prior year.
The manufactured products category, which comprises 64.23 percent of the WPI, experienced a price increase of 0.41 percent during this month. Among the 22 products in this category, 13 saw a price rise, 8 experienced a decline, and 1 remained unchanged.
Particularly noteworthy groups that reported month-over-month price hikes included basic metals, chemicals and chemical products, textiles, and other non-metallic mineral products. Conversely, categories such as rubber and plastics products, food products, computer, electronic and optical products, paper and paper products, and beverages saw price drops in December 2025 compared to November 2025.
In November, India’s wholesale price inflation was negative, with a decline of (-0.32 percent) compared to the same month last year. The inflation rate for WPI was reported at (-1.21 percent) in the preceding month of October and 2.16 percent in November of the previous year.
On another note, the Consumer Price Index (CPI)-based inflation rate for India was projected at 1.33 percent for December 2025, showing a slight increase from 0.71 percent in November.
Food inflation remained negative in December at -2.71 percent, reflecting a decrease in food prices compared to the same month last year. This marks the seventh consecutive month of negative food inflation, providing some relief to household budgets, although the December figure is slightly better than the -3.91 percent noted for November.
Nonetheless, the overall inflation outlook remains favorable. The Reserve Bank of India’s (RBI) monetary policy committee recently revised its inflation forecast for the financial year 2025-26 down to 2 percent, a reduction from the 2.6 percent predicted in October, influenced by the significant drop in food prices and adjustments to the GST rates.
RBI Governor Sanjay Malhotra announced a 25 basis points cut in the repo rate, lowering it to 5.25 percent from 5.5 percent, as inflation rates have decreased, allowing for a focus on enhancing growth.
Malhotra emphasized that the robust economic growth of 8.2 percent in the second quarter of the current financial year, along with a substantial inflation drop to 1.7 percent, presents a rare “Goldilocks period” for the Indian economy.