India’s wholesale price inflation eased to 0.13% in September, down from a four-month high of 0.52% in August
India’s wholesale price index (WPI) eased to 0.13% in September from a four-month high of 0.52% in August, provisional data from the Ministry of Commerce and Industry showed on Tuesday. The rate of decline was primarily due to a reduction in the prices of essential goods such as food items, fuel and power, and primary articles.
Food prices, especially vegetables, wheat, pulses, and oilseeds, recorded a decline of 1.99%, providing significant relief to the WPI, while the decline in primary articles deepened to 3.32% from 2.10% in August. The cost of fuel and power also decreased to 2.58% from 3.17%. Although the rate of decline was relatively slow, the reduction still helped improve the WPI data. The fall in prices has provided much-needed relief to the middle class and underprivileged amid the ongoing global economic turbulence.
Economists had predicted that the WPI would rise by 0.5% year-on-year in September, but the Indian market demonstrated its resilience and held its ground. Not all sectors contributed to the decline in the WPI; some even saw an increase. The growth in prices of manufactured products, however, moderated to 2.33% from 2.55% a month earlier, indicating a cooling trend in the sector.
According to Paras Jasrai, associate director at India Ratings and Research, “A sharp decline in food prices, down 2% year-over-year in September 2025, was a significant factor in pulling down wholesale inflation. Vegetable prices saw the steepest drop within the food segment, plummeting 24.4% year-over-year in September 2025 (August 2025: up 0.2% year-over-year). The fuel and power segment also recorded deflation of 2.6% in September 2025, marking the sixth consecutive month of decline.”