NEW DELHI: Wholesale price index (WPI)-based inflation returned to positive territory in August 2025, after two consecutive months of deflation, according to data released by the Ministry of Commerce & Industry on Monday.
The annual rate of inflation, calculated on a year-on-year (YoY) basis, stood at 0.52% (provisional) for August 2025, a significant reversal from the -0.58% recorded in July 2025. This shift is primarily attributed to rising prices in key sectors such as food products, other manufacturing, non-food articles, and other transport equipment.
On a month-on-month (MoM) basis, the WPI for all commodities increased by 0.52% in August 2025 compared to July 2025, continuing an upward trend observed over recent months.
Primary articles (Weight: 22.62%) saw a MoM increase of 1.60%, though it still recorded a YoY deflation of -2.10%. Prices of non-food articles, minerals, and food articles rose significantly. Fuel & Power (Weight: 13.15%) declined by 0.69% MoM, with decreases in electricity and mineral oils. YoY inflation remained negative at -3.17%.
Manufactured Products (Weight: 64.23%) saw a modest MoM increase of 0.21% was observed, while YoY inflation rose to 2.55%. Among 22 manufacturing groups, 13 saw price increases, led by food products, textiles, and electrical equipment.
Food Index:
The WPI Food Index, which includes food articles and food products, increased by 1.15% MoM. YoY food inflation turned positive at 0.21%, up from -2.15% in July, driven by higher prices of vegetables, fruits, and milk.
Vegetables prices surged 5.60% MoM, though YoY inflation remained negative at -14.18%. Onions and Potatoes saw steep YoY declines of -50.46% and -44.11%, respectively. Oil Seeds recorded a sharp YoY inflation of 13.94%, reflecting sustained price pressures.
It must be noted that retail inflation in August inched back above 2%, after hitting an eight-year low of 1.61% in July. The year-on-year Consumer Price Index (CPI)-based inflation stood at 2.07% in August 2025, compared with 3.65% a year ago. Retail food inflation also rose, moving to -0.69% in August from -1.76% in July.
A combination of consistently low retail and wholesale inflation was visible in the low first quarter nominal GDP growth of 8.8% compared to 7.8% growth in real GDP growth.