India’s Wholesale Prices in August Climbed to 0.52%

India’s wholesale price index (WPI)-based inflation turned positive in August 2025, climbing to 0.52% on a year-on-year basis. This marks a notable rebound from the -0.58% recorded during the same month last year. According to data from the Ministry of Commerce, the rise has been attributed to an uptick in the prices of food products, mineral oils, crude petroleum, natural gas, and manufactured basic metals.

Overview of WPI Inflation Trends

• Current Rate: 0.52% (August 2025)
• Previous Year (August 2024): -0.58%
• Market Expectation: A Reuters poll had estimated WPI at 0.30%

This positive rate signals an upward movement in wholesale price levels after months of subdued or negative inflation.

Factors Contributing to the Rise

Food Products: Food inflation rose to 0.21% in August from -2.15% in July.

Mineral Oils & Crude Petroleum: Wholesale inflation in crude petroleum and natural gas stood at -9.87%, compared to 1.77% in August last year.

Manufactured Products: Prices increased 2.55%, reversing a 2.05% fall in the previous month.

Other Categories: Positive contributions from non-food articles, non-metallic mineral products, and transport equipment.

Performance of Key Segments

• Primary Articles: Inflation rose to -2.10% from -4.95% in July.
• Fuel and Power: Prices declined -3.17% in August, compared to -2.43% in July.
• Retail Inflation: India’s retail inflation also edged up to 2.07% in August from 1.55% in July.