Wholesale Price Index Rises to 9-Month High at 1.81% in January 2026

Wholesale Inflation Accelerates Sharply

India’s wholesale price inflation surged to 1.81% year-on-year in January 2026, marking a nine-month high and a notable acceleration from December levels. The rise reflects broad-based price pressures across key segments of the economy.

On a sequential basis, WPI increased 0.51% month-on-month, indicating strengthening price momentum across supply chains.

What Drove the Rise in WPI?

The uptick in wholesale inflation was largely driven by:

1 Manufactured Products Inflation

A strong rebound in manufactured goods prices led the increase, with notable gains in:

• Base metals
• Other manufacturing segments
• Non-food articles
• Food articles
• Textiles

The manufacturing component’s acceleration signals re-emerging cost pressures at the production level.

2 Primary Articles

Primary articles inflation also firmed up, adding to the upward pressure on headline WPI.

3 Fuel & Power Remains in Deflation

In contrast, fuel and power prices remained in deflation, acting as a stabilising force and preventing a sharper rise in headline inflation.

Inflation Trend Analysis

• Headline WPI: 1.81% YoY (9-month high)
• Sequential change: +0.51% MoM
• Cost-push pressures: Building, especially in manufacturing and food
• Energy prices: Providing partial cushion

The data suggests that cost-push inflation is re-emerging, primarily led by manufacturing and food-related components, while benign energy prices continue to offer relief.

Economic Implications

The rise in wholesale inflation may:

• Influence input costs for corporates
• Impact margin outlooks in manufacturing-heavy sectors
• Be closely monitored by policymakers for spillover into retail inflation

If manufacturing and primary inflation sustain momentum, upstream price pressures could gradually transmit into consumer inflation over the coming months.

Outlook

While energy prices are currently cushioning headline inflation, broad-based firming in manufacturing and primary segments indicates rising underlying pressures. The trajectory of commodity prices and supply chain dynamics will remain critical in shaping the near-term inflation outlook.