Wholesale Inflation Slows to 0.39% in May as Food Prices Ease

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%