There was a jump in wholesale inflation, retail inflation also increased; Know its effect on you?, Wholesale price index wpi saw significant surge in December 2025 retail inflation rate also gone up but well below four percent

New Delhi. There has been a big jump in the Wholesale Price Index (WPI) i.e. wholesale inflation rate in December 2025. If we look at the data released by the government, the wholesale inflation rate increased to 0.83 percent in December. This is the highest in the last eight months. In November, the wholesale inflation rate had become minus 0.32 percent. The main reason for the positive wholesale inflation rate in December is the change in the prices of manufacturing, minerals and food items. At the same time, retail inflation rate has also increased.

The government has said that the inflation rate in the manufactured goods category has been 1.82 percent. Whereas, in November 2025 it was 1.33 percent. The reason for increase in inflation in this category was increase in prices of machinery, equipment, textiles and other items. The wholesale inflation rate of food items remained zero in December 2025. Whereas, in November the prices of these things had fallen by 2.60 percent. At the same time, the inflation rate of primary commodities increased to 0.21 percent in December. In November, the wholesale inflation rate of this category was minus 2.93 percent. Inflation in the prices of vegetables decreased by 3.5 percent compared to last year. There was a 20.23 percent decline in the wholesale inflation rate of vegetables in November.

Wholesale inflation data shows that onion prices fell by 54.40 percent in December. Whereas, in November 2025 the price of onion was 64.70 percent. There was a contraction of 38.21 percent in the price of potato. The price of pulses also declined by 13.88 percent. At the same time, the price of milk increased by 3.23 percent compared to the previous year. Retail inflation also increased to 1.3 percent in December. Whereas, the retail inflation rate in November 2025 was 0.7 percent. The Reserve Bank and the Union Finance Ministry have set a target of 4 percent for the retail inflation rate. Thus, retail inflation is still quite low. To control inflation, the Reserve Bank had continuously increased the repo rate from 2022. Then, when inflation came down, the Reserve Bank has now reduced the repo rate to 5.25 percent. At present, the increase in retail inflation will not affect your pocket. Because the prices of daily essential items are still very low.