Wholesale Price Index (WPI) for January 2025: Inflation Rate and Key Highlights

The Department for Promotion of Industry and Internal Trade (DPIIT) has released the Wholesale Price Index (WPI) for January 2025, reporting an annual inflation rate of 2.31% (provisional) compared to January 2024. The increase in inflation is primarily due to the rising prices in the categories of manufactured food products, food articles, non-food articles, and textiles. The month-over-month (MoM) WPI change for January 2025 stood at (-) 0.45% compared to December 2024, indicating a marginal decline in wholesale prices.

Key Trends in WPI Components for January 2025

The WPI is broadly categorized into three major groups: Primary Articles, Fuel & Power, and Manufactured Products. The trends in these categories for January 2025 are as follows:

1. Primary Articles (Weight: 22.62%)

• The index for Primary Articles declined by 2.01%, decreasing from 193.8 (December 2024) to 189.9 (January 2025, provisional).
• Food Articles: Prices saw a decline of 3.62% in January 2025 compared to December 2024.
• Crude Petroleum & Natural Gas: Prices increased by 6.34%, indicating rising energy costs.
• Non-Food Articles: Prices increased by 0.66%.
• Minerals: A marginal increase of 0.22% was recorded.

2. Fuel & Power (Weight: 13.15%)

• The index for Fuel & Power increased by 0.47%, rising from 149.9 (December 2024) to 150.6 (January 2025, provisional).
• Mineral Oils: Prices increased by 0.71%.
• Electricity: Prices rose by 0.20%.
• Coal: Prices remained unchanged compared to the previous month.

3. Manufactured Products (Weight: 64.23%)

• The index for Manufactured Products increased by 0.14%, from 143.0 (December 2024) to 143.2 (January 2025, provisional).
• Out of 22 manufacturing sub-sectors, 15 groups recorded price increases, 5 groups recorded declines, and 2 groups remained unchanged.

Sectors with price increases:

• Other manufacturing
• Manufacture of food products
• Machinery & Equipment
• Chemicals & Chemical Products
• Pharmaceuticals, Medicinal Chemical & Botanical Products

Sectors with price declines:

• Basic Metals
• Fabricated Metal Products (except machinery & equipment)
• Wearing Apparel
• Beverages
• Other Transport Equipment

WPI Food Index and Inflation Trends

WPI Food Index (Weight: 24.38%)

The WPI Food Index, which includes food articles from Primary Articles and food products from Manufactured Products, declined from 195.9 (December 2024) to 191.4 (January 2025).

Annual Inflation Rate in the WPI Food Index

The inflation rate for WPI Food Index declined from 8.89% (December 2024) to 7.47% (January 2025), indicating a slowdown in food inflation.

Final Index for November 2024

• The final WPI for November 2024 was revised to 156.4, with an annual inflation rate of 2.16%.
• The final figures are based on updated data sources and response rates.

Compilation and Revision Policy

• The response rate for WPI compilation in January 2025 stood at 90.4%.
• The final WPI for November 2024 was compiled at a 95.5% response rate.
• Provisional figures undergo revision after 10 weeks as per the DPIIT revision policy.

Future WPI Releases

• The WPI for February 2025 is scheduled for release on March 17, 2025.
• DPIIT releases WPI data monthly on the 14th (or the next working day if the 14th is a holiday).
• The WPI is compiled using data from institutional sources and selected manufacturing units across India.