Wholesale inflation rises to 1.81 per cent in Jan as food and manufacturing prices firm up

India’s wholesale price inflation climbed to 1.81 per cent in January , marking the third consecutive month of increase, according to official data released on Monday. The rise was mainly driven by higher prices of food articles, non food items and manufactured products. Wholesale inflation had stood at 0.83 per cent in December 2025 , while it was 2.51 per cent in January last year .

The Wholesale Price Index, or WPI , measures the average change in prices of goods at the wholesale level before they reach consumers. It reflects the prices that producers and bulk traders receive for goods such as food items, fuel and manufactured products. The index is calculated by assigning weights to major categories including primary articles, fuel and power, and manufactured products, and then tracking price movements across these segments. A rise in WPI generally indicates that input costs for businesses are increasing.

When wholesale prices go up, companies often face higher production expenses. If the trend continues, these costs may eventually be passed on to consumers, influencing overall inflation in the economy. WPI is therefore seen as an early indicator of price pressures building up in the supply chain and can affect business margins, investment decisions and policy responses.

According to the latest data, inflation in food articles moved into positive territory at 1.55 per cent in January compared to a deflation of 0.43 per cent in December. Vegetable prices registered inflation of 6.78 per cent after contracting 3.50 per cent in the previous month. Inflation in manufactured products rose to 2.86 per cent from 1.82 per cent in December, while the non food articles category recorded a sharp increase to 7.58 per cent. However, the fuel and power segment remained in deflation at 4.01 per cent.

Retail inflation, measured by the Consumer Price Index, edged up to 2.75 per cent in January. The Reserve Bank of India primarily tracks retail inflation while deciding on benchmark interest rates. Earlier this month, the central bank retained its key policy rate at 5.25 per cent after cumulative rate cuts of 1.25 percentage points during the current financial year. With wholesale prices firming up and retail inflation still relatively moderate, policymakers are expected to closely monitor price trends in the months ahead.