Wholesale Inflation Falls Further into Negative Zone

India’s wholesale price index (WPI)-based inflation entered deeper into negative territory, registering -1.21% in October 2025, down from -0.13% in September, according to the Ministry of Commerce and Industry. The drop in wholesale prices is primarily attributed to a significant decline in the prices of food articles, fuel, electricity, and basic metals.

What is Wholesale Inflation (WPI)?

The WPI tracks price movements at the wholesale level, i.e., between businesses, and serves as a leading indicator of price trends before they reach consumers. It differs from the Consumer Price Index (CPI), which measures changes in retail prices paid by consumers.

Key Trends in October 2025 WPI Data

• WPI Inflation Rate: Slipped to -1.21% in October from -0.13% in September.
• WPI Food Index: Registered a sharp deflation of -5.00%, marking the second consecutive month of food price drop.
• Primary Articles: Witnessed deflation of -6.18%, reflecting reduced wholesale prices in key raw materials.
• Fuel and Power: Sector also entered deflationary territory, recording -2.55%.
• Manufactured Products: Inflation eased to 1.54% in October from 2.33% in September, showing softening in industrial goods pricing.

Reasons Behind the Deflation

The WPI decline is attributed to,

• Lower food prices, especially in vegetables and cereals.
• Decline in global crude oil prices, affecting mineral oils and energy segments.
• A general cooling in manufacturing and metal prices, likely due to weak global commodity demand.

Connection with Retail Inflation (CPI)

India’s retail inflation, based on CPI, also saw a historic low of 0.25% in October 2025. The concurrent dip in both wholesale and retail indices indicates a broad-based moderation in price pressures across the economy, benefiting both producers and consumers.

Static Facts

• WPI Inflation October 2025: -1.21%
• Food Index Deflation: -5.00%
• Primary Articles Deflation: -6.18%
• Fuel and Power Deflation: -2.55%
• Manufactured Products Inflation: 1.54%
• Retail Inflation (CPI) in October 2025: 0.25%