Overview
Wholesale Inflation Declines in October 2025: India’s wholesale inflation continued to move deeper into the negative zone in October 2025, reflecting a broad-based decline across major commodity groups. The Wholesale Price Index (WPI) stood at -1.21%, compared to -0.13% in September, showing a sharper fall in wholesale-level prices. This downward trend highlights weakening price pressures in food, energy, and metal categories, signalling deflationary conditions at the producer level.
Static GK fact: The WPI is published by the Ministry of Commerce and Industry, while the CPI is released by the National Statistical Office (NSO).
Understanding WPI
The Wholesale Price Index measures average changes in prices at the wholesale level before goods reach the retail market. It is used to assess early inflation trends among producers. Unlike the Consumer Price Index (CPI), which tracks retail-level price changes for households, the WPI focuses on bulk trading and industrial input pricing.
Static GK Tip: India shifted from the WPI (2004–05 base) to the updated 2011–12 base year to align with global statistical standards.
Key Trends in October 2025
The October data reflects a steady fall across several major WPI components. The WPI Food Index recorded a strong deflation of -5.00%, marking the second month of continuous decline. Primary Articles saw sharper deflation at -6.18%, driven by lower prices of vegetables and cereals.
The Fuel and Power group also slipped into negative territory at -2.55%, supported by lower global crude oil prices. In contrast, Manufactured Products inflation eased to 1.54% from 2.33% in September, indicating softening industrial costs.
Static GK fact: Fuel and Power has a weight of 13.15% in the WPI basket, making global energy fluctuations crucial for India’s wholesale trends.
Drivers of Deflation
Several factors contributed to the deepening deflation in WPI. The biggest driver was the decline in food prices, especially perishables and cereals. Additionally, falling global crude oil prices pulled down mineral oil and energy-related components. Weak global demand led to lower metal prices, pushing basic metals into deflation.
This combination of domestic and global forces led to subdued price pressures across wholesale markets.
Link with CPI Trends
The decline in WPI aligns with the fall in India’s retail inflation. The CPI dropped to 0.25% in October 2025, a historic low. With both wholesale and retail indices showing declining prices, India is experiencing a rare phase of synchronized inflation moderation. This easing benefits producers through lower input costs and supports consumers through reduced retail prices.
Static GK Tip: CPI has a higher weightage for food (around 45%) compared to WPI, making food trends heavily influence retail inflation.
Economic Implications
Prolonged deflation at the wholesale level may signal easing demand conditions, especially in manufacturing. However, it also offers relief from cost pressures, supporting industrial recovery. Policymakers will monitor whether deflation persists, as prolonged declines can impact producer profitability.
Static Usthadian Current Affairs Table
Wholesale Inflation Declines in October 2025:
| Topic | Detail |
| WPI inflation October 2025 | -1.21% |
| WPI Food Index | -5.00% |
| Primary Articles | -6.18% |
| Fuel and Power | -2.55% |
| Manufactured Products | 1.54% |
| CPI inflation October 2025 | 0.25% |
| Base year for WPI | 2011–12 |
| Ministry releasing WPI | Ministry of Commerce and Industry |
