“Rise in energy, petrochemicals and metals points to renewed cost-push inflation with broad-based acceleration with inflation in Fuel and Power increasing to 27.41%, Manufactured Products to 7.48%, and Primary Articles to 7%. Persistent increases in wholesale prices, particularly in upstream industries, could gradually pass through to downstream manufacturing and consumer prices with a lag unless offset by productivity gains or lower input costs” said Mr. Rajeev Juneja, President PHDCCI.

“Higher prices of petroleum products primarily reflect increased crude oil inventory and refining costs. Since petroleum products constitute a major input for freight transportation, logistics, aviation, power generation and industrial production, sustained increases are expected to raise operating costs across multiple sectors”, he added.

The revised WPI basket has been expanded from 697 to 957 items, incorporating emerging sectors and improving the representation of the evolving structure of the Indian economy. The new series also adopts Gross Value of Output (GVO) as the basis for weights, introduces improved methods for index compilation and missing data imputation, and reorganises the energy basket by placing crude petroleum and natural gas under the Fuel and Power group. Renewable energy sources, including solar and wind, as well as nuclear electricity, have also been incorporated into the index.

Introduction of the revised Wholesale Price Index (WPI) series with base year 2022-23 along with the launch of Output Producer Price Index (OPPI), Trial Input Producer Price Index (IPPI) and Service Producer Price Indices (Service PPIs) is a welcome move, he added.

The chemical industry has experienced rising prices owing to higher feedstock costs linked to crude oil and natural gas, increased prices of imported intermediates and stronger demand from pharmaceuticals, construction materials, automobiles and consumer goods industries.

Food inflation at the wholesale level (5.49% YoY) has increased, reflecting higher prices of processed food products and selected agricultural commodities. However, food price pressures remain considerably lower than energy-related inflation.

“The latest wholesale inflation data indicate that energy and commodity prices continue to be the principal drivers of producer inflation, due to persistent geopolitical challenges, will put pressures on corporate margins in the short term”, said Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI.

The positive rate of inflation in January 2026 is primarily attributed to increase in prices of manufacture of basic metals, other manufacturing, non-food articles, food articles and textiles, added Mr Juneja.

On a month-on-month basis, WPI for the month of January, 2026 stood at 0.51%, driven by moderation in prices of Primary Articles and Fuel & Power groups, while registering an increase in prices of Manufactured products , said Mr Rajeev Juneja.

The Primary Articles group (weight: 22.62%) saw a decrease from 0.67% in December 2025 to -0.15% in January 2026 on a month-on-month basis. The decline is majorly due to fall in prices of food articles (-1.79%) and minerals (-0.47%). While, the Price of non-food articles (5.32%) and Crude Petroleum & Natural Gas (4.27%) registered an increase in January 2026, said Mr Juneja.

In the Fuel and Power category (weight: 13.15%), inflation decreased by 1.62%, on a month-on-month basis, supported by a moderation in the prices of electricity and mineral oils. The price of coal (0.73%) increased in January, 2026 as compared to December, 2025 due to increase in demand, said Mr Juneja.

The Manufactured Products group (weight: 64.23%) reported an increase from 0.28% in December 2025 to 1.30% in January 2026. On a month-on-month basis, groups that showed an increase in prices were manufacture of basic metals; food products; textiles. The manufacture of pharmaceuticals, medicinal chemical and botanical products; and machinery and equipment witnessed  a decrease in prices in January, 2026, said Mr. Juneja.

Overall, the WPI is expected to remain range-bound due to moderation in prices of Fuel and Power group, said Dr Ranjeet Mehta, CEO| Secretary General, PHDCCI.