India’s wholesale inflation rises to 10-month high:Increases to 1.81% in January; food and beverage items become expensive

Wholesale inflation (WPI) increased to 1.81% in January. Earlier in December, wholesale inflation was at 0.83%. This is the highest in 10 months. It was at 2.05% in March 2025. The commerce ministry released wholesale inflation figures on Monday, February 16, 2026. Daily necessities and food items become 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 also divided into four parts. Retail inflation at 8-month high In January, retail inflation increased to 2.75% compared to the previous month. In December, it was at 1.33%. This is the highest in 8 months. In May 2025, inflation had reached 2.82%. Impact of Wholesale Price Index (WPI) on Common People
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). Whereas, the Wholesale Price Index (WPI) refers to the prices that one trader charges from another trader in the wholesale market. Different items are included to measure inflation. For example, in wholesale inflation, the share of manufactured products is 63.75%, primary articles like food is 22.62%, and fuel and power is 13.15%. Meanwhile, in retail inflation, food and products contribute 45.86%, housing contributes 10.07%, and there are contributions from other items including fuel.