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India's wholesale inflation drops to -0.13% in June on food, fuel prices

June 2025 WPI-based inflation: Food index declined to -0.26%, compared to 1.72% in the previous month

WPI, WPI Inflation

India's June 2025 wholesale inflation | Photo: Shutterstock

Vasudha Mukherjee New Delhi

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Wholesale Price Index (WPI) inflation dipped to -0.13 per cent in June, from 0.39 per cent in May, marking the first negative reading since the beginning of the year. The drop was largely driven by deflationary trends in food articles, fuel and power, and basic metals, according to the data released by the Commerce and Industry ministry on Monday. WPI-based inflation has been steadily easing since March and hit a 14-month low of 0.39 per cent the previous month. 
 
The WPI measures the average change in prices of goods sold in bulk and serves as a key indicator of inflation at the producer level. It reflects supply and demand trends across sectors such as agriculture, mining, and manufacturing.
 
 
The WPI for all commodities stood at 153.8 in June, down from 154.1 in May. 
 

WPI Food Index

The WPI food index declined to -0.26 per cent year-on-year, compared to 1.72 per cent seen in May. This came despite a month-on-month increase in the Food Index to 190.2 from 189.5, supported by higher prices of vegetables, fruits, and milk. However, on an annual basis, vegetable prices were down, with the onion prices falling 33.49 per cent, and potatoes declining by 32.67 per cent.
 

Fuel and power

Fuel and power inflation declined to -2.65 per cent in June, compared to -2.27 per cent in May.
 
Within this category, petrol and diesel fell 6.57 per cent and 5.12 per cent respectively in June 2025 compared to the same month last year, while electricity prices dropped 9.10 per cent sequentially.
 

Manufacturing sector

Manufactured products, the largest component of the WPI basket, stood at 1.97 per cent. Prices rose in segments such as pharmaceuticals, transport equipment, and electronics, while basic metals, food products, and tobacco products recorded declines. 
 
Among manufactured items, vegetable and animal oils and fats continued to witness deflation, with prices falling 23.05 per cent year-on-year. The index for basic metals dropped by 3.14 per cent, and mild steel semi-finished steel by 3.70 per cent.
 
Retail inflation data for June is expected to be released later today.

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First Published: Jul 14 2025 | 12:02 PM IST

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