India’s Wholesale Inflation Rises Slightly to 1.81% in January

New Delhi – India’s annual wholesale inflation rate rose to 1.81 per cent in January compared to the same month last year, according to data released by the Ministry of Commerce and Industry on Monday.

The increase in inflation was largely driven by rising prices in the manufacturing of basic metals, other manufactured goods, non-food articles, food items, and textiles, the official statement noted. On a month-to-month basis, wholesale inflation registered a 0.51 per cent increase in January 2026 compared to December 2025.

The food-related component of wholesale inflation showed mixed trends. The overall food index declined from 196.0 in December 2025 to 194.2 in January 2026. However, on a year-on-year basis, inflation under the food index rose to 1.41 per cent.

The manufacturing sector, which holds a 64.23 per cent weight in the wholesale inflation calculation, recorded a 1.3 per cent increase during the month. Out of 22 manufacturing categories, 19 witnessed a rise in prices, while three recorded a decline. Major segments showing price increases included basic metals, food products, textiles, other manufacturing goods, and electrical equipment.

Meanwhile, prices declined in certain sectors such as pharmaceuticals, medicinal and botanical products, machinery and equipment, and furniture during January compared to the previous month.

Separately, retail inflation based on consumer prices stood at 2.75 per cent in January compared to the same month last year. Food inflation was recorded at 2.13 per cent during the period. Prices of vegetables such as potatoes, onions, and garlic declined, along with pulses including arhar and tur, while tomato prices registered an increase. Housing inflation during the month was estimated at 2.05 per cent.

The data also highlighted a sharp surge in prices of precious metal jewellery, with silver jewellery inflation rising to 159.67 per cent and gold jewellery inflation reaching 46.77 per cent in January, reflecting strong demand and price volatility in global bullion markets.

With inputs from IANS