CHENNAI: India’s wholesale price index (WPI), a key measure of factory-gate inflation, fell to –0.58 per cent in July 2025, marking the second consecutive month of deflation and the lowest level in two years, according to the data released by the Ministry of Commerce and Industry on Thursday.
The last time WPI inflation was this low was in July 2023, when it stood at –1.36 per cent.
The decline was led mainly by a sharp fall in food prices. Primary food articles saw a drop of 6.29 per cent, with vegetables falling 28.9 per cent, onions 44.4 per cent, potatoes 41.3 per cent, pulses 15.12 per cent, fruits 2.65 per cent and eggs, meat and fish 1.09 per cent. Fuel and power prices also eased, recording a decline of 2.43 per cent compared with a year earlier.
In contrast, manufactured products registered price gains, rising 2.05 per cent in July, indicating some underlying cost pressures in core goods despite the overall decline in wholesale prices.
Economists say the sharp drop in food and fuel prices has pulled headline WPI into negative territory, easing cost burdens for producers. However, the firming trend in manufactured goods suggests that core inflation pressures have not fully subsided, making it important to watch upcoming data closely for any reversal in the trend.