India’s wholesale price inflation climbed for the third straight month in January 2026, driven by higher food articles, non-food items, and manufactured products.
India’s wholesale price inflation (WPI) accelerated to 1.81 per cent in January 2026, marking a 10-month high and extending its upward trend for the third consecutive month, according to data released by the Ministry of Commerce and Industry on Monday.
The WPI-based inflation rate stood at 0.83 per cent in December 2025 and 2.51 percent in January last year. The ministry said the positive inflation print in January was primarily due to rising prices of manufactured basic metals, other manufacturing segments, textiles, non-food articles, and food articles.
Food prices turn positive
Food articles inflation moved back into positive territory at 1.55 per cent in January, compared with a deflation of 0.43 per cent in December. Vegetable prices recorded a sharp uptick, with inflation rising to 6.78 per cent against a contraction of 3.50 per cent in the previous month.
The WPI food index also firmed up during the month, reflecting higher wholesale prices across select agricultural commodities.
Manufacturing inflation strengthens
Inflation in manufactured products rose to 2.86 per cent in January from 1.82 per cent in December, indicating a firming trend in factory-gate prices. Out of 22 manufacturing groups, the majority recorded price increases, including basic metals, food products, textiles, and electrical equipment.
Non-food articles inflation saw a sharp spike to 7.58 per cent in January, up from 2.95 per cent a month earlier, while crude petroleum and natural gas prices also registered gains on a month-on-month basis.
Fuel and power remain in deflation
In contrast, the fuel and power segment remained in deflation at 4.01 per cent in January, compared to 2.31 per cent in December. On a monthly basis, electricity prices fell 2.91 per cent and mineral oil prices dropped 1.68 per cent, although coal prices edged up marginally.
The index for primary articles declined 0.15 per cent month-on-month to 193.9 in January from 194.2 in December, with food articles and minerals witnessing price corrections.
Retail inflation at 2.75 per cent
Meanwhile, India’s retail inflation, measured by the Consumer Price Index (CPI), stood at 2.75 per cent in January 2026, according to data released earlier by the Ministry of Statistics and Programme Implementation.
The Reserve Bank of India, which primarily targets CPI inflation for monetary policy, has cut the repo rate by 125 basis points in the current fiscal year and earlier this month kept the benchmark rate unchanged at 5.25 per cent.
With wholesale inflation firming up but retail inflation remaining within the central bank’s comfort zone, price trends across food, manufacturing, and fuel will remain closely watched in the coming months.
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