WPI inflation set to rise further to 2.0-2.2% in February 2026: ICRA expects the WPI-food inflation to harden further in February 2026 and continue on an upward trajectory, as an unfavourable base sets in. 

Besides, global commodity prices have continued to rise in February 2026, which along with the lagged impact of the depreciation pressure in the USD/INR pair over the last few months is likely to continue to weigh on the landed cost of imports.

EXHIBIT: As expected, headline WPI inflation rose to a 10-month high of 1.8% in January 2026 from 0.8% in December 2025; core inflation stood at a 38 month high 3.2%, amid higher commodity prices and currency depreciation

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