Key Highlights
- Second consecutive month of negative inflation at wholesale level, declining to -0.58%
- Sharp fall in food items contributes most to the downturn.
- Primary commodities and energy segments exhibit pronounced deflation.
- Manufactured goods, however, display modest inflation of 2.05%.
- WPI trend mirrors a similar easing in the CPI, now at 1.55%.
Detailed Insights
The July 2025 release of the Wholesale Price Index (WPI) confirmed a continued dip below zero, registering an annual change of -0.58%. This sustained price decline reflects a cooling pressure on input costs in core sectors such as agriculture, energy, and metals.
Food sector dynamics
- Food index contracted by -2.15%, driven mainly by lower prices for vegetables, cereals, edible oils, pulses, onions and tomatoes.
- Seasonal surplus and a mild fall in retail demand helped curb price rises.
Primary article slump
- Primary items fell further to -4.95%, indicating weakness in agricultural output and mining outputs.
- Metal and forest produce remained in the red.
Energy and fuel
- Fuel and power index reported a decline of -2.43%, as international crude prices stabilized and domestic demand stayed moderate.
- Energy‑linked inputs continue to exert downward pressure.
Manufactured goods
- Inflation in manufactured goods edged upward to +2.05%, signalling a partial recovery in input‑cost recovery and modest gain in pricing power.
WPI vs CPI
- WPI records bulk‑level price movements, whereas CPI captures retail‑level cost changes.
- Both indexes moving in the same direction suggests that the price moderation is pervasive throughout the supply chain.
- Such a trend may influence RBI’s monetary policy stance and help ease industry cost burdens.