What Does the Latest WPI Data Reveal About India's Inflation Trends?

Wholesale Price Inflation Sees Notable Decline

New Delhi: The wholesale price inflation (WPI) has dropped to a negative 0.13 percent in June, driven by falling prices in food items and fuel, alongside a reduction in costs for manufactured goods, according to government statistics released on Monday.

In comparison, the WPI inflation rate was recorded at 0.39 percent in May and stood at 3.43 percent in June of the previous year.

The industry ministry noted that the negative inflation rate for June 2025 is largely attributed to declines in prices of food articles, mineral oils, basic metals, crude petroleum, and natural gas.

WPI data indicates that food articles experienced a deflation of 3.75 percent in June, a significant increase from the 1.56 percent deflation observed in May, with vegetables showing a steep price drop.

Vegetable prices fell by 22.65 percent in June, compared to a 21.62 percent decline in May.

For manufactured products, inflation was recorded at 1.97 percent, slightly down from 2.04 percent in May.

The fuel and power sector also saw a negative inflation rate of 2.65 percent in June, compared to a deflation of 2.27 percent in the previous month.

The Reserve Bank of India (RBI) primarily focuses on retail inflation when shaping its monetary policy.

Retail inflation figures for June are expected to be released later today.

Last month, the RBI made a significant move by reducing the benchmark policy interest rate by 0.50 percent to 5.50 percent in response to the easing inflation.