Wholesale Inflation Eases to 0.13% in September as Food Prices Fall

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India’s wholesale inflation dropped to 0.13% in September 2025, down from 0.52% in August, according to government data released on Monday. The fall indicates a cooling trend in wholesale prices, mainly due to a sharp decline in food and fuel costs, even as prices of manufactured goods saw modest gains.

The Wholesale Price Index (WPI), which measures price movements of goods traded in bulk, showed mixed trends across key sectors. On a month-to-month basis, WPI inflation fell by 0.19% from August, suggesting easing price pressures at the wholesale level.

Sector-Wise Performance

The manufactured products category, which accounts for 64.23% of the index,  recorded a 2.33% inflation rate, driven by price increases in food products, textiles, electrical equipment, and non-metallic minerals. Out of 22 manufacturing groups, 10 reported price rises, reflecting stable industrial activity.

In contrast, primary articles witnessed a sharp deflation of 3.32% year-on-year, showing a notable fall in prices of agricultural commodities. The decline was led by a 24.41% drop in vegetable prices, including a 64% fall in onion prices and a 42% fall in potato prices compared to September 2024.

The fuel and power segment also showed negative inflation at -2.58%, as energy prices continued to soften. Petrol and diesel prices declined by 3.82% and 3.09%, respectively, compared to the same period last year, offering some relief to consumers and transport sectors.

Food Index Records Noticeable Correction

The WPI Food Index, which tracks both food articles and processed food products, dropped to 192.0 in September from 193.5 in August. As a result, food inflation turned negative, moving from 0.21% in August to -1.99% in September.

Within the food segment, milk prices saw a small rise of 2.97%, while pulses recorded a steep 17.19% deflation. The mixed trend reflects seasonal variations, better supply conditions, and government measures to stabilize essential commodity prices.

Data and Outlook

The September WPI data was compiled with a weighted response rate of 80.2%, with final figures to be revised after 10 weeks. The next update, covering October 2025, will be published on November 14.

Economists suggest that the steady easing in wholesale inflation, especially in food and energy segments, could help reduce overall input costs for industries and support the government’s broader efforts to maintain price stability and boost rural purchasing power.

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Economic Trends Food Prices Fuel Costs India Economy Inflation Wholesale Price Index WPI Data