Wholesale Inflation Eases to 2.05% in March 2025

The wholesale price inflation (WPI) in India saw a decline to 2.05% in March 2025, down from 2.38% in February 2025, according to government data released on April 15, 2025. The easing of inflation was primarily due to a sharp drop in vegetable prices, which led to deflation in vegetables at 15.88%. Despite the overall reduction in food inflation, the manufactured product prices saw an uptick, with a significant rise in manufactured product inflation at 3.07% compared to 2.86% in February. The data reveals a mixed trend in inflation, with food articles seeing a reduction, while sectors like fuel, power, and manufactured goods saw price increases.

Key Points

Wholesale Price Inflation (WPI)

• March 2025: 2.05% (down from 2.38% in February 2025)
• March 2024: 0.26% (year-on-year increase)
• The easing of inflation is mainly attributed to cheaper food items, especially vegetables.

Food Inflation

• March 2025: 1.57% (down from 3.38% in February 2025)
• Major factor contributing to easing food inflation: sharp deflation in vegetable prices.
• Vegetables saw deflation of 15.88% in March (compared to 5.80% in February 2025).

Manufactured Products

• Inflation in manufactured goods increased to 3.07% in March 2025, up from 2.86% in February 2025.

The rise in manufactured product prices was attributed to increases in,

• Food product manufacturing
• Textiles manufacturing
• Other manufacturing sectors

Fuel and Power

• March 2025: Inflation in fuel and power stood at 0.20%, an increase from the deflation of -0.71% in February 2025.

Deflation in Vegetables

• Deflation in vegetables reached 15.88% in March 2025, compared to 5.80% in February 2025.
• The sharp drop in vegetable prices contributed significantly to the reduction in food inflation.

Government’s Perspective

• The Ministry of Industry noted that the positive inflation rate in March 2025 was driven by price increases in manufactured food products, food articles, electricity, textiles, and other manufactured goods.

Impact on Economy

• The decline in food inflation could ease the burden on consumers, while the rise in manufactured product inflation and fuel/power prices may point towards pressure in those sectors.
• The inflation trends reflect a mixed economic scenario, with some price stability in food items, but rising concerns in industrial sectors.