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WPI inflation falls to –0.13% in June 2025 due to lower food, fuel, and electricity prices.
Wholesale inflation stood at –0.13% in June 2025.
Vegetable prices dropped sharply by 22.71%.
Fuel and power prices declined by 2.65% year-on-year.
Electricity prices fell significantly by 9.17%.
WPI value dropped slightly from 154.1 in May to 153.8 in June.
India’s wholesale inflation, based on the Wholesale Price Index (WPI), slipped into negative territory in June 2025. According to data released by the Commerce Ministry on July 14, 2025, the WPI inflation stood at 0.13%, compared to 2.59% in June 2024. This is the first deflation recorded in 2025 and indicates easing price pressure for producers.
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The negative WPI inflation is largely due to falling prices in key sectors:
Vegetables: Dropped sharply by 22.71% year-on-year.
Pulses: Declined by 14.11% compared to June last year.
Electricity: Fell by 9.17%, contributing to the drop in overall inflation.
Crude Petroleum and Natural Gas: Registered a small decline of 0.63% annually.
Fuel and Power: Overall dropped by 2.65% year-on-year and 2.52% month-on-month.
The Food Index showed a 0.26% drop compared to June 2024, but a 0.37% rise from May 2025.
Primary Articles (which include both food and non-food items) fell by 3.38% annually, but saw a 0.81% monthly increase.
Manufactured products, which form the largest part of the WPI basket, saw a 1.97% increase over June 2024, but dipped 0.07% from May 2025. This shows that while producer costs in manufacturing remain slightly elevated, they are relatively stable month-on-month.
The overall WPI value stood at 153.8 in June, down slightly from 154.1 in May. This reflects a broad cooling in wholesale prices across sectors, particularly in essentials like food, fuel, and power.
This decline in wholesale inflation points to easing input costs for producers. If this trend continues, it could bring down retail inflation, which is closely monitored by the Reserve Bank of India (RBI) for policy decisions.
Since the RBI uses Consumer Price Index (CPI) data for setting interest rates, the upcoming retail inflation data will be crucial in shaping the country’s monetary policy in the coming months.
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India’s wholesale inflation turning negative in June 2025 reflects a welcome fall in food, fuel, and electricity prices. This decline offers relief to producers and may help reduce retail inflation. With easing input costs, the data brings optimism for the economy. RBI’s next move will depend on upcoming consumer inflation figures to guide monetary policy decisions.