increase in wholesale inflation
New Delhi. Wholesale inflation continued to increase for the second consecutive month and reached 0.83 percent in December 2025. This increase was recorded due to monthly increase in prices of food items, non-food items and manufactured goods. This information was received from government data released on Wednesday. Wholesale price index (WPI) based inflation stood at minus 0.32 percent in November and minus 1.21 percent in October. In contrast, wholesale inflation in December 2024 stood at 2.57 percent.
Why did wholesale inflation increase?
"Inflation in December 2025 increased mainly due to increase in prices of other manufacturing, manufacturing of minerals, machinery and equipment, manufacturing of food products and textiles etc.," the Industry Ministry said in a statement. According to WPI data, food prices declined by 0.43 percent in December, while the rate stood at 4.16 percent in November.
What is the inflation rate of vegetables?
Inflation rate of vegetables declined by 3.50 percent in December whereas it was 20.23 percent in November. Inflation in the case of manufactured products stood at 1.82 percent in December as against 1.33 percent in November 2025. Inflation in the category of non-food items stood at 2.95 percent in December as against 2.27 percent in November. Inflation rate in fuel and power sectors stood at 2.31 percent in December while it was 2.27 percent in November.
Inflation rate of egg and pulses
Retail inflation rose to a three-month high of 1.33 percent in December last month due to increase in prices of kitchen essentials including vegetables, eggs and pulses. Inflation was 0.71 percent in November. The previous high level was 1.44 percent recorded in September. The government had released figures in this regard this week itself.
Inflation rate important for RBI
The Reserve Bank of India (RBI) keeps an eye on retail inflation. So far in the current financial year, the Central Bank has reduced the policy rate repo by 1.25 percent which is now 5.5 percent. Last month, the RBI had reduced the inflation estimate for the current financial year to two percent from the earlier 2.6 percent. The Reserve Bank of India has increased its estimate of GDP growth for the financial year 2025-26 to 7.3 percent from the earlier 6.8 percent. India had registered a growth of 8.2 percent in the July-September quarter and 7.8 percent in the April-June quarter.
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