Wholesale price inflation in negative zone for second month, primary articles show severe deflation

The annual rate of inflation based on All India Wholesale Price Index (WPI) number is -0.58% (provisional) for the month of July, 2025 (over July, 2024). Negative rate of inflation in July, 2025 is primarily due to decrease in prices of food articles, mineral oils, crude petroleum & natural gas, manufacture of basic metals etc. The month over month change in WPI for the month of July, 2025 stood at 0.39% as compared to June, 2025. With the latest figures, WPI has marked its second consecutive month in negative territory and wholesale price inflation is at a two-year low.

Primary Articles index increased by 1.18 % from 185.8 (provisional) for the month of June, 2025 to 188.0 (provisional) in July, 2025. However, it showed a contraction of around 5% on year.

Fuel & Power index increased by 1.12% from 143.0 (provisional) for the month of June, 2025 to 144.6 (provisional) in July, 2025. Prices fell 2.43% on year.
Manufactured Products index for this major group declined by 0.14% from 144.8 (provisional) for the month of June, 2025to 144.6 (provisional) in July, 2025. A modest rise of 2% was seen on year.

WPI Food Index which is the Food Index consisting of 'Food Articles' from Primary Articles group and 'Food Product' from Manufactured Products group have increased from 190.2 in June, 2025 to 191.3 in July, 2025. The rate of inflation based on WPI Food Index remains negative from - 0.26% in June, 2025 to - 2.15% in July, 2025.

The steep drop in primary articles reflects heavy slide in key vegetable prices. Wholesale prices of Onion and Potato are down 44.38% and 41.26% respectively. Pulses prices are down 15% while vegetable segment as a whole is witnessing deflation of around 29%.

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