India’s wholesale inflation, measured by the Wholesale Price Index (WPI), fell to a two-year low of -0.58% in July 2025, marking the second straight month of deflation. The decline was largely driven by a sharp fall in food and fuel prices, even as manufactured goods showed price gains.
Food prices dropped by 6.29%, with onions (-44.4%), potatoes (-41.3%), and vegetables (-28.9%) leading the fall. Fuel and power costs declined 2.43%, as petrol and diesel prices continued their long-term slide, though cooking gas edged higher. In contrast, manufactured products rose 2.05%, led by cement, apparel, and leather.
Experts suggest WPI inflation may have bottomed out in July and is likely to turn positive in August due to higher food and crude oil prices, currency weakness, and seasonal factors. The trend parallels retail inflation, which also hit an eight-year low of 1.55% in July, offering temporary relief for policymakers.
