Archive · 15 Jan 2026
India's WPI inflation rises to 0.83% in December 2025
India's wholesale price inflation, which measures the average change in prices of goods at the wholesale level, turned positive in December 2025, reaching 0.83%.
This is a significant change from November 2025 when it was negative at -0.32%.
The increase was higher than what experts expected, which was 0.30%.
This positive change was mainly because of higher prices of food items like vegetables, pulses, and cereals, as well as global commodity prices.
Fuel and power prices were still decreasing, which helped keep overall inflation in check.
The Reserve Bank of India (RBI) has been lowering interest rates because inflation has been low, and they are focusing more on consumer price inflation.
The RBI also predicts that the Indian economy will grow by 7.3% in the next financial year.
However, economists warn that sustaining this momentum will require higher job creation and wage growth, especially in rural areas.
Urban areas are seeing slower job growth and muted wage increases, which could affect future consumption.
Overall, while the economy is growing, there are concerns about how long this growth can be sustained without stronger income dynamics.
India's WPI inflation turned positive at 0.83% in December 2025, up from -0.32% in November 2025.
The December reading exceeded market expectations of 0.30%.
The increase was driven by base effects and rising food and global commodity prices.
Food inflation was boosted by higher prices of vegetables, pulses, and cereals, while fuel and power prices continued to deflate.
Manufactured product inflation also firmed up, indicating building input cost pressures.
- Who
- India
- What
- Wholesale Price Index (WPI) inflation turned positive at 0.83% in December 2025
- When
- December 2025
- Where
- India
- Why
- Due to base effects, rising food prices, and global commodity prices
Optimistic View
Cautious View
Economic Growth
Optimistic View
India's GDP is projected to grow by 7.5-7.8% in FY26, driven by resilient domestic demand and strong services activity.
Cautious View
Growth may moderate to 6.6-6.9% in FY27 due to a high base and persistent global uncertainties.
Consumer Sentiment
Optimistic View
Consumer confidence remained elevated between October and December, led by a sharp rural recovery.
Cautious View
Urban sentiment could weaken further once policy tailwinds fade, potentially curbing borrowing-led consumption.
Inflation Trends
Optimistic View
Wholesale price inflation turned positive at 0.83% in December, indicating building input cost pressures.
Cautious View
Inflation has likely bottomed out and is expected to settle around 4% in 2026-27, with rates likely to stay on hold.
- WPI Inflation Rate
- 0.83% in December 2025
- Previous Month's WPI Inflation
- -0.32% in November 2025
- Market Expectations
- 0.30%
- Key Drivers
- Base effects, food prices, global commodity prices
- Food Inflation Contributors
- Vegetables, pulses, cereals
- Fuel and Power Prices
- Deflation of 2.31%
- Manufactured Product Inflation
- 1.82%
- Consumer Price Index (CPI) Inflation
- 1.3% in December 2025
- RBI Policy Repo Rate
- 5.25%
- RBI GDP Growth Projection
- 7.3% for FY26
- GDP Growth Projection (Deloitte)
- 7.5-7.8% in FY26
- GDP Growth Projection (Deloitte) for FY27
- 6.6-6.9%
- Consumer Sentiment Index (ICS)
- Rise of around 2% between October and December
- Index of Current Economic Conditions (ICC) in Rural Areas
- Increase of nearly 3% in December
- Real Agricultural Wages Growth
- Over 5% year-on-year between April and November 2025-26
- Tractor Sales Growth
- Near 20% rise during the same period
- Rural Passenger Vehicle Sales Growth
- Almost twice the pace of urban growth in Q3FY26
- Wage Bills for BSE500 Companies
- Grew 6-7% year-on-year in Q2FY26
- Salary Growth Projection for 2026
- About 9%
- Personal Loan Growth
- Moderated to 12.8% on-year in November
Sources
India’s WPI inflation turns positive at 0.83% in December, signalling easing deflationary pressures – Firstpost
Strong domestic growth will attract foreign investments: RBI Governor
Wholesale price inflation rises marginally to 0.83 pc in December
India’s wholesale inflation rises to 0.83% in December, food inflation flat, manufactured goods turn costlier
Wholesale price inflation rises marginally to 0.83 pc in December
India to grow at 7.5-7.8% this fiscal: Deloitte
Dalal Street Under Pressure: What’s Driving the 2026 Market Correction?
Wholesale price inflation rises marginally to 0.83% in December
Wholesale price inflation rises to 0.83% in December 2025, against a contraction of (-) 0.32% in November: Govt data
WPI inflation turns positive at 0.83% in December 2025
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