Wholesale Inflation Hits 8-Month High of 0.83% in December

• India's wholesale price inflation (WPI) rose to 0.83% in December, an eight-month high, after two months of deflation.
• This marks a return to positive territory from a 0.3% contraction in November, indicating firming price momentum.
• Annual wholesale inflation averaged 0.6% in 2025, significantly lower than 1.74% in the previous year.
• Retail inflation also increased in December to a three-month high of 1.33%, though still below RBI's 2-6% tolerance band.
• India's inflation measurement framework is undergoing changes, with CPI moving to a 2024 base year and WPI expected to rebase to 2022-23.

Why It Matters: Wholesale inflation in India surged to an eight-month high in December, signaling a broad price increase.