Bad news on the inflation front: Wholesale inflation rose for the second consecutive month in December; kitchen prices increased.

News Topical, Digital Desk : Wholesale inflation continued to rise for the second consecutive month and reached 0.83 percent in December 2025. The rise was due to increase in the prices of food items, non-food items and manufactured goods on a monthly basis. This information was given by the government data released on Wednesday. The Wholesale Price Index (WPI) based inflation was minus 0.32 percent in November and minus 1.21 percent in October. In contrast, wholesale inflation was 2.57 percent in December 2024.

Why did wholesale inflation increase?

"Inflation in December 2025 increased mainly due to increase in prices of other manufactures, manufacture of minerals, machinery and equipment, manufacture of food products and textiles, etc," the Industry Ministry said in a statement.
According to WPI data, food prices declined by 0.43 per cent in December, while the rate was 4.16 per cent in November.

What is the inflation rate of vegetables?

Inflation in vegetables declined to 3.50 percent in December from 20.23 percent in November. Inflation in manufactured products stood at 1.82 percent in December compared to 1.33 percent in November 2025.
Inflation in the non-food articles category stood at 2.95 percent in December compared to 2.27 percent in November. Inflation in the fuel and power sectors stood at 2.31 percent in December compared to 2.27 percent in November.

Inflation rate of eggs and pulses

Retail inflation rose to a three-month high of 1.33 percent in December due to rising prices of kitchen essentials, including vegetables, eggs, and pulses. Inflation was 0.71 percent in November.
The previous high was 1.44 percent in September. The government released the data this week.

Inflation rate is important for RBI

The Reserve Bank of India (RBI) monitors retail inflation. The central bank has cut the policy repo rate by 1.25 percent so far in the current fiscal year, which now stands at 5.5 percent. Last month, the RBI had lowered its inflation forecast for the current fiscal year to 2 percent from the earlier 2.6 percent.
The Reserve Bank of India has raised its GDP growth forecast for the fiscal year 2025-26 to 7.3 percent from the earlier 6.8 percent. India had registered growth of 8.2 percent in the July-September quarter and 7.8 percent in the April-June quarter.

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