WPI inflation dips for 2nd month, hits 25-month low of -0.58% in July

The negative rate of inflation in July is primarily due to a decrease in prices of food articles, mineral oils, crude petroleum and natural gas, manufacture of basic metals

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The Wholesale Price Index (WPI)-linked inflation on Thursday stayed negative for the second month in a row at -0.58 per cent in July, due to the decline in food and fuel prices, according to the data from the Ministry of Commerce and Industry.

 

The wholesale inflation during the same period last year was 2.10 per cent, whereas the inflation for June stood at -0.13 per cent.

 

"Negative rate of inflation in July, 2025 is primarily due to decrease in prices of food articles, mineral oils, crude petroleum and natural gas, manufacture of basic metals," the ministry said in a statement.

Food articles saw sharper deflation

According to the WPI data, food articles recorded a sharper deflation of 6.29 per cent in July, compared with 3.75 per cent in June, led by a steep fall in vegetable prices. Deflation in vegetables rose to 28.96 per cent in July from 22.65 per cent during the last month. 

 

Among other categories, inflation in manufactured products inched up slightly to 2.05 per cent in July from 1.97 per cent in June. The fuel and power segment saw a deflation of 2.43 per cent in July, as against 2.65 per cent in the previous month.

CPI inflation slowed to 1.55% in July

As reported by Business Standard earlier, the retail inflation, measured by the Consumer Price Index (CPI), slowed to 1.55 per cent in July, down from 2.1 per cent in June. The decline was driven by a contraction in food prices, the data showed on Tuesday.

This was the ninth consecutive month of easing prices, taking inflation well below the Reserve Bank of India’s (RBI's) target band of 2–6 per cent. At 1.55 per cent, it is the lowest print since June 2017, according to data from the Ministry of Statistics and Programme Implementation.

Policy rates unchanged, inflation forecast lowered in August MPC

 

The RBI, which tracks inflation for policy decisions, had kept benchmark rates unchanged at 5.5 per cent earlier this month. The RBI’s monetary policy committee had revised its CPI-based inflation projections, sharply decreasing estimates for the financial year 2025-26 (FY26), mainly due to softer food prices, a favourable base effect, and easing global commodity costs. The FY26 inflation forecast has been eased to 3.1 per cent, down from 3.7 per cent.