India’s wholesale price inflation eased further to 0.39% in May 2025, down from 0.85% in April, according to the latest data released by the Ministry of Commerce and Industry. This positive WPI inflation was primarily driven by price increases in manufactured food products, electricity, chemicals, transport equipment, non-food articles, and other manufacturing sectors.
This marks the fifth consecutive month of low wholesale inflation, indicating a sustained trend of moderated input costs for businesses. On a month-on-month basis, the Wholesale Price Index (WPI) declined slightly by 0.06%, reflecting a stable inflation environment across sectors.
Among the major components:
-
Primary Articles group saw an annual decline of 2.02%, with food articles rising by 0.56%, while minerals fell sharply by 7.16%. Non-food articles remained nearly flat.
-
Fuel and Power category registered a year-on-year decline of 2.27% and a monthly decline of 0.95%. Within this group, mineral oils dropped by 2.06%, whereas electricity and coal rose by 0.80% and 0.81%, respectively.
-
Manufactured products, which carry the highest weight in the WPI basket, recorded a 2.04% year-on-year increase, though prices remained unchanged month-over-month. Segments such as textiles, pharmaceuticals, electronics, and transport equipment posted increases, while basic metals, food products, and chemicals saw price corrections.
The WPI Food Index stood at 189.5 in May, slightly up from 189.3 in April. However, the annual food inflation eased to 1.72%, compared to 2.55% in April, showing further cooling in wholesale food prices.
Given the continued softness in WPI and stable input costs, economists view this as a favorable condition for price stability, potentially supporting efforts to manage retail inflation effectively. The Ministry noted that these are provisional figures, and the final data for May 2025 will be released on July 14, 2025.
The consistent moderation in wholesale inflation is considered a positive indicator for the economy, especially in supporting manufacturing margins and easing consumer price pressures.
