1.81 percent is the provisional annual rate of inflation based on the All India Wholesale Price Index (WPI) for January 2026, effective for the month and officially released by the DPIIT. As of February 19, 2026, this data confirms a significant divergence in the economy: while fuel prices have dropped, manufacturing and basic metal costs are surging rapidly.
Analysis of WPI January 2026 Trends
The economic landscape detailed in the latest release shows a sharp contrast between consumer relief and industrial strain. The Fuel and Power basket recorded a massive deflation of -4.01 percent. Conversely, the Manufactured Products group, carrying a heavyweight of 64.23 percent in the index, climbed to an inflation rate of 2.86 percent. Out of 22 manufacturing groups, 19 witnessed direct price increases.
In practice, DDOs processing long-term CPWD civil contracts must apply this 1.81 percent provisional figure for price variation clauses (PVC) instead of waiting for the final index, which delays vendor payments unnecessarily.
Major Commodity Group Indices and Weightage
The internal components reveal exactly where the inflation pressure points lie. Primary Articles, driven by non-food components, remain positive despite a crash in specific vegetable sectors.
| Commodity Group | Weight (%) | Jan 2026 Index | YoY Inflation |
|---|---|---|---|
| All Commodities | 100.00 | 157.8 | 1.81% |
| Primary Articles | 22.62 | 193.9 | 2.21% |
| Fuel and Power | 13.15 | 145.9 | -4.01% |
| Manufactured Products | 64.23 | 147.5 | 2.86% |
| WPI Food Index | 24.38 | 194.2 | 1.41% |
Eligibility and Exclusions in Index Application
A common misconception among government employees is linking wholesale inflation to their monthly salary benefits. It is vital to separate where WPI applies and where it is strictly excluded.
Infrastructure and Civil Contracts (PVC)
Industrial Supply Tenders
Wholesale Trade Policy Formulations
Dearness Allowance (DA) Calculations
Retail Consumer Pension Formulation
Employees under 7th CPC Pay Matrix
Actionable Checklist for Procurement Officers
With the Manufacture of Basic Metals index rising by 5.98 percent, departments drafting new estimates must act immediately.
- Update base cost estimates for steel and iron procurement.
- Revise transport contract estimates factoring in the -4.58 percent drop in Petrol and -4.29 percent drop in HSD.
- Process pending November 2025 escalation bills using the finalized -0.13 percent index.
What is the WPI inflation rate for January 2026?
The provisional annual inflation rate is 1.81 percent for January 2026, driven primarily by manufactured products and basic metals.
Did fuel prices increase or decrease in January?
Fuel prices decreased significantly. The Fuel and Power group recorded a deflation of -4.01 percent, led by a drop in LPG and high-speed diesel.
Which items saw the biggest price drop?
Potato prices saw the biggest drop of -38.84 percent, followed by Onions at -33.42 percent compared to the same month last year.
Does this WPI data affect government employee DA?
No. Dearness Allowance is calculated using the Consumer Price Index for Industrial Workers (CPI-IW), not the Wholesale Price Index.
हिंदी सारांश
जनवरी 2026 के लिए थोक मूल्य सूचकांक आधारित महंगाई दर 1.81 प्रतिशत दर्ज की गई है। इस महीने आलू और प्याज की कीमतों में 30 प्रतिशत से अधिक की भारी गिरावट आई है। इसके विपरीत बेसिक मेटल्स और निर्मित उत्पादों की कीमतें बढ़ी हैं। ईंधन और बिजली वर्ग में -4.01 प्रतिशत की गिरावट देखी गई है। यह डेटा सरकारी कॉन्ट्रैक्ट्स के लिए आवश्यक है लेकिन केंद्रीय कर्मचारियों के महंगाई भत्ते पर इसका कोई असर नहीं होता है।
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