India’s wholesale price inflation (WPI) eased significantly to 0.39% in May 2025, driven primarily by deflation in food articles and fuel, along with a cooling of prices in manufactured products, according to the latest government data released on June 16, 2025. The steepest fall was observed in vegetable prices, which saw deflation exceeding 21%, reinforcing a broader trend of disinflation across key sectors.
Why in News?
The WPI inflation rate dropped to 0.39% in May from 0.85% in April 2025. Vegetable prices saw sharp deflation, significantly influencing the overall WPI. This marks a continuation of the cooling inflation trend, also reflected in retail inflation, which fell to a six-year low of 2.82% in May. The data is crucial as it helps industry and policymakers assess wholesale-level price trends in the economy.
Key Highlights from May 2025 WPI Data
- Overall WPI inflation: 0.39% (decrease from 0.85% in April 2025)
- WPI inflation in May 2024: 2.74% (YoY basis)
Food articles
- Deflation: -1.56% in May
- April comparison: –0.86%
Vegetables
- Steep deflation: -21.62% in May
- April comparison: -18.26%
Manufactured products
- Inflation: 2.04%, down from 2.62% in April
Fuel and Power
- May 2025: -2.27% (deflation)
- April 2025: +2.18% (inflation)
Official Statement
According to the Ministry of Commerce and Industry, the positive WPI rate is attributed to price increases in
- Manufacture of food products
- Electricity
- Other transport equipment
- Chemicals and non-food articles
Significance of the Trend
- Disinflation in WPI shows supply-side cooling, especially in perishable goods.
- Positive impact on manufacturers due to input cost moderation.
- Combined with easing retail inflation, it offers the RBI more flexibility in monetary policy decisions.
- Suggests stable price environment going into H2 2025, aiding economic recovery and consumer sentiment.
Summary/Static | Details |
Why in the news? | Wholesale Price Index 2025 May |
Food Articles | -1.56% deflation |
Vegetables | -21.62% deflation |
Manufactured Products | +2.04% inflation |
Fuel and Power | -2.27% deflation |
Overall WPI Inflation | 0.39% |