India’s Wholesale Price Inflation at Record Two-Year Low

Overview

India’s Wholesale Price Inflation at Record Two-Year Low: India’s factory gate inflation, measured by the Wholesale Price Index (WPI), dropped to -0.58% in July 2025, its lowest in two years. This is the second month in a row with negative inflation, driven mainly by falling food and fuel prices. However, certain manufactured goods continued to rise in price.

Wholesale Price Index Structure

The WPI tracks the price movement of goods at the wholesale level. It is divided into Primary Articles (22.6%), Fuel and Power (13.2%), and Manufactured Products (64.2%).
Static GK fact: The base year for WPI calculation is 2011–12.

Food items from Primary Articles and Manufactured Products together hold 24.4% weight in the index. Major subgroups include Basic Metals, Food Products, Chemicals, and Textiles.

Food Price Trends

Primary food articles fell 6.29% in July 2025, marking the third consecutive month of deflation. Major declines included:

• Onions: -44.4%
• Potatoes: -41.3%
• Vegetables: -28.9%

Pulses fell 15.12%, fruits 2.65%, and protein-rich foods like eggs, meat, and fish declined 1.09%. In contrast, wheat rose 4.4% and oil seeds surged 9.77%, showing mixed trends.
Static GK tip: India is among the top five global producers of onions, potatoes, and pulses.

Fuel and Power Movements

Fuel and power prices fell 2.43% in July. Petrol prices declined 5.7% and high-speed diesel dropped 4.3%, marking the 14th and 27th consecutive months of fall respectively. Cooking gas, however, rose 1.23%, showing divergence in the fuel category.

Manufactured Products Inflation

Manufactured goods prices increased 2.05% in July. Key rises were:

• Apparel: +2.5%
• Leather: +2.57%
• Non-metallic mineral products: +2.7%
• Cement and plaster: +3.4%

Manufactured animal oils and fats remained high at 22.04% despite a slowdown. Food products, paper, chemicals, and pharmaceuticals saw smaller increases.

Economic Outlook

Experts believe WPI inflation hit its lowest in July and may return to positive territory by August 2025, with factors like rising food and crude oil prices, currency depreciation, and seasonal weather effects influencing the trend. Heavy rains could push perishable food prices higher.

Link to Retail Inflation

The WPI trend matches retail inflation data, which fell to an eight-year low of 1.55% in July 2025. This was driven by lower food prices despite rising edible oil costs caused by global geopolitical tensions. Such moderation supports monetary policy and economic planning.

Static Usthadian Current Affairs Table

India’s Wholesale Price Inflation at Record Two-Year Low: