NEW DELHI (Economy India): India’s wholesale inflation rate, based on the Wholesale Price Index (WPI), fell to -0.13% in June 2025, marking a notable decline from 0.39% in May and a sharp contrast to the 3.43% recorded in June 2024, according to the latest data released by the Ministry of Commerce & Industry.
The fall in inflation is primarily attributed to softening prices of primary food articles, fuel and power, crude petroleum, and basic metals. The provisional data highlights weakening demand pressure in certain sectors despite signs of recovery in manufacturing and select commodity groups.
Key WPI Highlights – June 2025
| Group | Index (June) | MoM Change (%) | YoY Inflation (%) |
|---|---|---|---|
| All Commodities | 153.8 | -0.19 | -0.13 |
| Primary Articles | 185.8 | +0.81 | -3.38 |
| Fuel & Power | 143.0 | -2.52 | -2.65 |
| Manufactured Goods | 144.8 | -0.07 | +1.97 |
| Food Index | 190.2 | +0.37 | -0.26 |
Major Drivers of WPI Decline
- Food Inflation Turns Negative
Despite a slight month-on-month rise, the food index recorded a year-on-year deflation of -0.26%, driven largely by:- Pulses: -14.09%
- Vegetables: -22.65%
- Potatoes: -32.67%
- Onions: -33.49%
- Crude Petroleum & Natural Gas
These items witnessed a 12.31% YoY decline, showing continued moderation in global energy prices. - Fuel & Power
Prices declined across the board, with:- Electricity: -9.10% MoM
- Petrol: -6.57% YoY
- HSD (Diesel): -5.12% YoY
- Manufactured Goods
Inflation in manufactured products remained modest at 1.97% YoY, with several sub-sectors like:- Vegetable oils and fats: -23.05%
- Basic metals: -3.14%
showing deflationary trends.
Sectoral Insights
- Vegetables and pulses continued their downward price trend due to seasonal supply factors and reduced mandi prices.
- Energy-intensive goods, such as cement, declined due to falling input costs and weaker construction demand.
- Consumer-oriented categories like pharmaceuticals and garments remained relatively stable, indicating consistent end-user demand.
Policy Implications
The negative WPI inflation for June 2025 reinforces the easing wholesale price pressure in the economy. Combined with relatively stable CPI (Consumer Price Index) inflation, the Reserve Bank of India (RBI) may find room to maintain its current interest rate stance, focusing more on growth support than inflation targeting in the near term.
Economists suggest that while deflation in WPI is not alarming due to its commodity-linked nature, continued contraction over multiple months could signal broader demand-side weaknesses.
The next WPI release for July 2025 is scheduled on 14 August 2025. Analysts will keenly watch whether:
- Monsoon-linked supply shocks,
- Festive season stocking, or
- Global commodity price trends
reverse the current disinflationary momentum.
Source: Department for Promotion of Industry and Internal Trade (DPIIT), Government of India
WPI Base Year: 2011–12 = 100
Compiled from institutional sources across India
(Economy India)
Source (PIB)
