India’s wholesale price inflation (WPI) remained in negative territory for the second consecutive month, registering a -0.58% decline in July 2025, according to government data. The contraction was driven by falling prices in food articles, fuel, and basic metals.
Food articles saw a sharp deflation of 6.29%, with vegetables plummeting 28.96% due to improved monsoon supplies. Fuel and power prices also eased slightly amid stable domestic supplies and lower global crude rates. Basic metals recorded a marginal decline, reflecting weaker demand from manufacturing and construction sectors.
Economists note that while lower wholesale prices may ease retail inflation, prolonged deflation could impact producer margins and investment incentives. The Reserve Bank of India continues to monitor WPI trends closely to maintain inflation within its target range of 2–6%.
Policy analysts also highlighted that global commodity prices and geopolitical developments could influence future wholesale price movements.
