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Ministry of Commerce & Industry | Department for Promotion of Industry and Internal Trade of India (DPIIT)
The Ministry of Commerce & Industry has released the Wholesale Price Index (WPI) for January 2026, indicating an annual inflation rate of 1.81%, up from 0.83% in December 2025. This upward trend is primarily driven by price increases in manufactured basic metals, non-food articles, and textiles. The index for manufactured products, which covers 22 NIC two-digit groups, saw 19 groups witnessing an increase in prices. The month-over-month (MoM) change in the WPI stood at 0.51%, reflecting a steady rise in wholesale costs across most major groups. While the Primary Articles group saw a slight MoM decrease of 0.15%, the Manufactured Products group—holding a 64.23% weight—experienced a significant MoM increase of 1.30%. Conversely, the Fuel & Power group provided some deflationary pressure, with a MoM decrease of 1.62%.
Key Pillars of the January 2026 WPI Report
Manufactured Products Surge: Prices for 19 out of 22 manufacturing sub-groups increased, with basic metals (5.82%) and food products showing the most prominent MoM gains.
Mixed Food Dynamics: The WPI Food Index rate of inflation (Y-o-Y) increased to 1.41%, even as MoM prices for food articles like vegetables (-14.62%) and potatoes (-20.70%) fell sharply.
Non-Food Article Growth: This sub-group saw a sharp 5.32% MoM increase, largely fueled by a 4.19% rise in oil seeds and a 4.27% jump in crude petroleum and natural gas prices.
Deflation in Fuel & Power: The annual rate of inflation for fuel and power remained negative at -4.01%, with significant MoM declines in electricity (-2.91%) and petrol (-1.71%).
Response and Finalization: The January data is provisional, based on a 84.2% weighted response rate, while the final November 2025 WPI has been settled at 156.2 with a -0.13% inflation rate.
What are “NIC Two-Digit Groups” in WPI? The National Industrial Classification (NIC) two-digit groups are a standardized system used to categorize manufactured products into broad industry sectors for statistical tracking. In the WPI framework, the Manufactured Products group is divided into 22 such NIC groups—ranging from “Manufacture of Food Products” to “Manufacture of Basic Metals.” Tracking inflation at the two-digit level allows economists and policymakers to pinpoint exactly which industrial sectors are driving wholesale costs. For instance, in January 2026, the fact that 19 out of 22 groups saw price hikes indicates a broad-based inflationary pressure across the Indian manufacturing landscape rather than a spike limited to a single niche.
Policy Relevance
The rise in WPI to 1.81% signals a transition from “Disinflationary Comfort” to “Input-Cost Pressure,” potentially impacting the profit margins of India’s manufacturing sector.
Strategic Impact:
Rising Input Costs for Manufacturing: The 5.82% MoM jump in basic metals prices directly impacts the production costs for the ₹9.52 lakh crore electronics sector and MSMEs building “Annapurna” grain ATMs.
Incentivizing the Startup Ecosystem: Sustained wholesale inflation in industrial inputs underscores the need for the ₹10,000 crore Startup India Fund of Funds 2.0 to fund deep-tech startups that can innovate more cost-efficient manufacturing processes.
Trade Uncertainty and Real Wages: As global trade uncertainty threatens to reduce real wages by 0.45% annually, a rise in wholesale prices further tightens the “squeeze” on small-scale producers in the informal sector.
Energy Cost Shield: The -4.01% Y-o-Y deflation in fuel and power acts as a critical buffer, helping to offset the rising costs in raw materials and preventing a faster spike in the final retail prices of goods.
Digital Transparency in Commodities: The use of AI-enabled forecasting and the AIKosh repository will be essential for the DPIIT to monitor these volatile commodity cycles and provide real-time alerts to the National Crisis Management Committee.
Follow the full news here: Wholesale Price Index - January 2026