New Delhi, February 16: India’s wholesale price-based inflation moved into positive territory in January 2026, with the annual rate touching 1.81 per cent, according to data released by the Department for Promotion of Industry and Internal Trade (DPIIT). The latest figures are provisional and are based on the 2011-12 base year for the Wholesale Price Index (WPI).
The WPI for “All Commodities” increased to 157.8 in January from 157.0 in December, reflecting a 0.51 per cent month-on-month rise. On a year-on-year basis, the index strengthened compared to January 2025, when inflation had remained subdued.
Manufacturing Sector Pushes Inflation Higher
The primary contributor to January’s inflation was the Manufactured Products segment, which accounts for over 64 per cent of the WPI basket. Inflation in this category rose to 2.86 per cent year-on-year, with the index climbing to 147.5.
Price increases were observed across several industrial categories, notably basic metals, textiles, electrical equipment, and food products. Of the 22 major manufacturing groups, 19 recorded a rise in prices during the month. However, pharmaceuticals, machinery and certain equipment categories witnessed a decline.
The index for basic metals recorded a sharp acceleration, signalling firm industrial demand and higher input costs.
Primary Articles Show Mixed Trends
The Primary Articles group, with a weight of 22.62 per cent, registered 2.21 per cent annual inflation, even as the month-on-month index dipped marginally by 0.15 per cent.
Within this group:
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Food Articles saw moderation in monthly prices, particularly vegetables.
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Vegetable prices fell sharply compared to December, though some items such as onions showed month-on-month volatility.
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Prices of non-food articles, including oilseeds, rose significantly.
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Crude petroleum and natural gas recorded an increase over the previous month, despite remaining in negative territory year-on-year.
Fuel & Power Continues to Ease
The Fuel & Power category remained under pressure, posting a (-4.01 per cent) annual inflation rate in January. The index declined to 145.9, largely due to lower prices of electricity and mineral oils.
Petrol and high-speed diesel continued to register negative inflation on a year-on-year basis, while LPG prices showed mixed trends.
Food Index Edges Up Annually
The composite WPI Food Index, which combines food articles and manufactured food products, recorded 1.41 per cent annual inflation in January. However, on a monthly basis, the index eased compared to December, reflecting seasonal corrections in vegetable prices.
Recent Inflation Trajectory
Over the past six months, wholesale inflation has shown gradual recovery:
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August 2025: 0.52%
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September 2025: 0.19%
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October 2025: (-1.02%)
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November 2025: (-0.13%)
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December 2025: 0.83%
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January 2026: 1.81%
The steady rise since November indicates strengthening price momentum, particularly in industrial goods.
Data Compilation and Revision Policy
The January WPI figures were compiled with a weighted response rate of 84.2 per cent, while November’s final data reflected a higher response rate of 93.4 per cent. As per the established revision cycle, provisional numbers will be updated over the coming weeks before being finalised.
DPIIT releases WPI data every month with a two-week lag. The next set of wholesale inflation figures, for February 2026, is scheduled to be released on March 16, 2026.
The January print suggests a moderate but broad-based rise in wholesale prices, led primarily by manufacturing and select primary commodities, while fuel prices continue to provide some relief to the overall index.
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