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India’s wholesale inflation rose to 1.81% in January 2026, driven mainly by higher prices of manufactured goods such as metals, textiles and food products. While fuel prices declined, rising production costs signal building price pressures across key industrial sectors of the economy.
WPI Inflation Edges Higher in January
New Delhi: India’s wholesale inflation rose to 1.81% in January 2026, according to the latest data released by the Ministry of Commerce & Industry. The increase is based on the Wholesale Price Index (WPI), which measures price changes at the wholesale level across the country. This marks a noticeable rise compared to previous months and signals a gradual build-up of price pressures in the economy.
On a month-to-month basis, the WPI increased by 0.51% in January compared to December 2025, indicating steady upward movement in wholesale prices.
The primary reason behind the rise in inflation was an increase in prices of manufactured products, which carry the highest weight in the WPI basket (over 64%). Prices rose in 19 out of 22 manufacturing categories.
Notable increases were seen in:
Basic metals
Food products
Textiles
Electrical equipment
Other manufacturing sectors
This suggests that production costs in key industrial segments are rising, which could eventually impact retail prices if the trend continues.
The category of Primary Articles—which includes food items, minerals, and crude petroleum—showed mixed trends.
Food prices declined month-to-month in January, especially vegetables and certain food articles. However, on a year-on-year basis, food inflation under WPI stood at 1.41%, showing moderate pressure.
Within food:
Vegetables recorded sharp fluctuations.
Pulses continued to show negative inflation.
Milk and eggs saw moderate increases.
Oilseeds recorded strong inflation, rising over 19% year-on-year.
This indicates volatility in agricultural commodities, particularly vegetables and oilseeds.
In contrast, the Fuel & Power category showed a decline. Prices of electricity and mineral oils dropped in January, pulling the category down by 1.62% month-to-month. Year-on-year fuel inflation stood at -4.01%, indicating cooling energy costs.
Lower fuel prices typically ease inflationary pressure across industries, as energy is a key input in transportation and manufacturing.
The latest data suggests that while energy prices are providing relief, rising manufacturing costs are pushing wholesale inflation upward. The steady increase over the last few months may indicate strengthening economic activity but also signals potential cost pressures.
Since WPI measures prices at the wholesale level, it does not directly reflect retail inflation faced by consumers. However, sustained increases in manufacturing prices can eventually be passed on to consumers.
The next WPI data release for February 2026 is scheduled for mid-March, which will offer further clarity on whether this upward trend continues.
