India Wholesale Price Inflation Rises to 1.81% in January, Food and Manufacturing Costs Drive Uptick

New Delhi, February 16: India’s wholesale price inflation extended its upward trajectory for the third straight month, climbing to 1.81 percent in January, as rising prices of food items, non food articles, and manufactured goods pushed the Wholesale Price Index higher on a month over month basis.

The latest government data released on Monday shows that Wholesale Price Index inflation stood at 0.83 percent in December 2025. In January of the previous year, the figure was higher at 2.51 percent.

Food and Manufacturing Segments Push WPI Higher​

According to the Ministry of Industry, the positive inflation rate in January 2026 was largely driven by price increases in basic metals, other manufacturing categories, non food items, food articles, and textiles.

Food inflation under WPI turned positive in January at 1.55 percent, reversing the deflation of 0.43 percent recorded in December. Within this segment, vegetable prices saw a sharp rebound, registering inflation of 6.78 percent in January compared to deflation of 3.50 percent in the previous month.

Manufactured products also recorded stronger price momentum. Inflation in this category rose to 2.86 percent in January, up from 1.82 percent in December, reflecting broad based price increases across industrial goods.

The non food items category witnessed a significant spike, with inflation jumping to 7.58 percent in January from 2.95 percent a month earlier, adding further pressure to the overall wholesale price index.

Fuel and Power Remain in Deflation​

In contrast, the fuel and power segment continued to remain in negative territory. Deflation in this category stood at 4.01 percent in January, compared to 2.31 percent in December, indicating sustained weakness in energy related prices.

Retail Inflation and RBI Policy Context​

On the retail front, inflation based on the Consumer Price Index rose to 2.75 percent in January, according to data released last week.

The Reserve Bank of India monitors retail inflation closely while setting benchmark interest rates. In the current fiscal year, the central bank has reduced policy interest rates by 1.25 percentage points amid low inflation conditions. Earlier this month, the RBI kept key policy interest rates unchanged at 5.25 percent.

With wholesale inflation now rising for three consecutive months, markets will closely track price trends across food, manufacturing, and commodity segments in the coming months.