The fall in USD/INR pair and rising global commodity prices exerted pressure on the landed cost of imports in the month; this was particularly reflected in non-food manufactured products or “core-WPI” category, that has risen by 0.5% MoM and 2.0% YoY in December 2025, the steepest uptick in 19 and 34 months, respectively.

EXHIBIT: Headline WPI rose by 0.8% YoY in December 2025, after posting deflation in the prior two months (-0.3%/-1.0% in Nov/Oct 2025); however, core-WPI inflation rose to a 34-month high of 2.0% in December 2025

Source: Office of the Economic Advisor, Ministry of Commerce and Industry, GoI; ICRA Research