US EditionIndia's Wholesale Inflation Turns Positive in December as Food, Manufacturing Prices Rise
RBI Governor cites strong macro fundamentals, $690 billion forex reserves, and robust domestic growth as reasons India will attract quality foreign investments despite rupee's 6% depreciation.
- Government data released in New Delhi on Wednesday showed wholesale price inflation at 0.83 per cent in December 2025, returning the Wholesale Price Index to positive territory after two months of deflation.
- Amid recent currency moves, the RBI governor Malhotra said the Indian economy is in a `Goldilocks phase` and that the rupee depreciated by about 6 per cent over the past 12 months, downplaying concerns about strength solely based on the currency level.
- Component breakdowns indicate manufactured products' WPI rose to 1.82 per cent from 1.33 per cent, non-food articles inflation increased to 2.95 per cent, while fuel and power and food articles showed deflation at 2.31 and 0.43 per cent respectively in December 2025.
- Last month, the Reserve Bank of India cut the policy interest rate by 25 bps to 5.25 per cent, lowered the inflation projection for the current fiscal to 2 per cent, and raised the FY26 GDP growth projection to 7.3 per cent.
- India's strong fundamentals — including forex reserves of about $690 billion — mean capital demand will remain strong, with quality investments continuing across banking and technology amid a growth projection of 7.4 per cent this year.
16 Articles
16 Articles
Wholesale inflation rises to 0.83% in December 2025 as manufacturing and primary costs climb - The Tribune
The annual rate of inflation based on the All India Wholesale Price Index (WPI) number reached 0.83 per cent (provisional) for the month of December 2025 compared to the same month in 2024.
Times of India
The Economic TimesIndia’s wholesale inflation ticks up to 8-month high of 0.83% in Dec after contracting 0.32% in Nov
Indias wholesale price inflation rose to 0.83% in December from a 0.32% contraction in November, exceeding market expectations of 0.30%, government data showed. Retail inflation also edged up to a three-month high of about 1.3% in December as food deflation eased, though it remained below the RBIs 4% target for the fourth straight month.
India Will Continue To Attract Foreign Investments Says RBI Gov Malhotra
India’s CPI inflation rose slightly but stayed subdued at 1.3 per cent year on year in December compared to 0.7 per cent year on year in the previous month on unfavorable base effect and rise in gold prices.
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