India's wholesale price inflation eased to 0.13% in September 2025, down from 0.52% in August, according to government data released on Monday. The Wholesale Price Index (WPI), a key economic indicator tracking price movements at the wholesale level, reflects mixed trends across different sectors.
The marginal inflation rate was primarily driven by higher costs in manufactured food products, non-food articles, textiles, and transport equipment. However, the month-over-month comparison showed a slight decline of 0.19% from August to September, suggesting some cooling in wholesale prices.
Sectoral Performance Shows Divergent Trends
The manufactured products sector, which holds the largest weight of 64.23% in the index, recorded positive inflation of 2.33%. This category saw increases across 10 out of 22 manufacturing groups, with food products, electrical equipment, and non-metallic minerals leading the uptick.
In contrast, primary articles witnessed deflation of 3.32% year-on-year, indicating falling prices in agricultural commodities. Food articles showed particularly significant price drops, with vegetables declining by 24.41% compared to September 2024. Notably, onion prices plummeted by nearly 64%, while potato prices fell by over 42% annually.
The fuel and power segment registered negative inflation of 2.58%, reflecting declining energy costs. Petrol and diesel prices dropped by 3.82% and 3.09% respectively compared to the previous year, providing relief to consumers and businesses alike.
Food Index Registers Sharp Decline
The WPI Food Index, combining food articles and food products, decreased to 192.0 in September from 193.5 in August. More significantly, food inflation turned negative to -1.99% from 0.21% in August, indicating substantial price corrections in essential commodities.
Milk prices showed a modest annual increase of 2.97%, while pulses registered a significant 17.19% deflation. The mixed performance in food categories highlights the complex dynamics affecting agricultural markets, influenced by seasonal factors, supply chain improvements, and government interventions.
The September data was compiled with an 80.2% weighted response rate, with final figures scheduled for revision after 10 weeks. The next wholesale price index report for October 2025 will be released on November 14.
