India records spike in wholesale inflation in December 2025:Food beverage items get expensive; WPI rises to 8-month high

Wholesale inflation (WPI) increased to 0.83% in December 2025. This is an 8-month high-level. Inflation has risen due to an increase in food prices. Earlier in November, it was at (-) 0.32%. While in October it had come down to (-) 1.21%. The Commerce Ministry released wholesale inflation figures on January 14, 2026. Daily necessities and food items became expensive Three components of wholesale inflation Primary articles, which have a weightage of 22.62%. Fuel and power has a weightage of 13.15% and manufactured products have the highest weightage of 64.23%. Primary articles are further divided into four parts. Retail inflation increased to 1.33% in November
In December, retail inflation increased to 1.33% compared to the previous month. This was a three-month high-level. Earlier in November, it was at 0.71%. In October, it was at 0.25%, which was the lowest level in 14 years. Impact of Wholesale Price Index (WPI) on Common Man
When wholesale inflation remains high for a long time, it negatively affects most productive sectors. If wholesale prices stay at high levels for too long, producers pass this burden onto consumers. The government can only control WPI through taxes. For example, when crude oil prices increased sharply, the government reduced excise duty on fuel. However, the government can only reduce taxes within certain limits. WPI has higher weightage for factory-related items like metals, chemicals, plastics, and rubber. How is inflation measured?
There are two types of inflation in India. One is retail and the other is wholesale inflation. The retail inflation rate is based on prices paid by ordinary consumers. This is also called the Consumer Price Index (CPI). Meanwhile, the Wholesale Price Index (WPI) refers to the prices that one business charges another business in the wholesale market. Different items are included to measure inflation. For example, in wholesale inflation, manufactured products have a share of 63.75%, primary articles like food 22.62%, and fuel and power 13.15%. In retail inflation, food and products have a share of 45.86%, housing 10.07%, and fuel along with other items also have their share.