India’s wholesale price inflation for December 2025 stood at 0.83%, driven by higher prices of manufactured goods and minerals, as per the Commerce and Industry Ministry. Food inflation remained stable at 0% with no price increase in wholesale food items compared to the previous year. The manufactured products group, accounting for 64.23% of the Wholesale Price Index (WPI), saw a 0.41% increase in prices during the month.
Some key groups like basic metals, chemicals, textiles, and non-metallic mineral products experienced price hikes, while others such as rubber products, food items, electronics, and paper products saw price declines in December 2025. In November, India had witnessed negative wholesale price inflation at -0.32%, a shift from the positive rates in the preceding months. The Consumer Price Index (CPI)-based inflation for December 2025 was 1.33%, slightly up from November’s 0.71%.
Food inflation in December remained negative at -2.71%, marking the seventh consecutive month of decline in food prices, providing relief to households. Despite the slight uptick from November’s -3.91%, the overall inflation outlook is favorable. The Reserve Bank of India (RBI) revised its inflation forecast for 2025-26 to 2% from the earlier 2.6%, citing lower food prices and GST rate reductions. RBI Governor Sanjay Malhotra announced a 25 basis points reduction in the repo rate to 5.25% to stimulate growth, given the lowered inflation and robust economic growth.
Malhotra highlighted the 8.2% economic growth in the second quarter and the significant drop in inflation to 1.7% as creating a favorable economic environment for India.
