New Delhi: India’s wholesale price–based inflation rose sharply in January, reaching its highest level in nine months, according to official data released by the Ministry of Commerce and Industry.
The Wholesale Price Index (WPI) inflation increased to 1.81% in January, up from 0.83% in December, signaling renewed price pressures across multiple sectors of the economy.
What Drove the Increase
Government data showed that the rise in wholesale inflation was primarily driven by higher prices of metals, manufactured goods, non-food items, food products, and textiles.
Food inflation at the wholesale level also picked up during the month, climbing to 1.41% in January, compared with zero inflation in December, reflecting rising costs of essential commodities.
Higher Than Market Expectations
Economists had largely expected a moderate increase in wholesale inflation, forecasting a rise to around 1.25%. The actual figure of 1.81% exceeded these projections, pointing to stronger-than-anticipated cost pressures.
Retail Inflation Also Edges Up
India’s retail inflation also rose in January 2026, reaching 2.75%, driven mainly by higher prices of food items and precious metals.
These figures are based on the new Consumer Price Index series, which uses 2024 as the base year. Inflation in rural areas stood at 2.73%, while urban inflation was recorded at 2.77%, indicating a broadly similar trend across regions.
Economic Outlook
While inflation remains within manageable levels, the uptick in both wholesale and retail prices could influence future policy decisions, especially as authorities balance growth concerns with price stability in the coming months.