In August 2025, India's Wholesale Price Index (WPI) inflation reached 0.52%, while retail inflation stood at 2.07%. Food articles, manufacturing products, non-food articles, and mineral products became more expensive, but electricity, fuel, and some metal and electronic products became cheaper. Overall, inflation increased in both wholesale and retail markets.
August WPI Inflation: The Ministry of Commerce and Industry released the Wholesale Price Index (WPI) for August 2025, showing inflation increased to 0.52% from -0.58% in July. Prices of food, manufacturing, non-food, mineral, and transport equipment rose, while prices of fuel, electricity, and some metal, electronic, and furniture products decreased. Retail inflation also rose to 2.07%, indicating an overall increase in inflationary pressure across both markets.
Key Reasons for the Increase in the Wholesale Market
Several factors contributed to the rise in wholesale inflation in August. The increase in prices of food and beverages, manufacturing products, non-food articles, non-metallic mineral products, and transport equipment fueled inflation.
The index for primary articles surged by 1.60 percent. It was 188.0 in July 2025, reaching 191.0 in August. Non-food articles recorded a price increase of 2.92 percent. Meanwhile, mineral prices rose by 2.66 percent, and food articles saw an increase of 1.45 percent.
Prices of manufactured products also increased. This is the largest segment of the WPI basket. Manufactured product prices rose by 0.21 percent in August compared to July. This clearly indicates a rise in the prices of goods produced in factories. Additionally, prices of food products, textiles, electrical equipment, other transport equipment, and machinery also saw an increase.
Some Items Became Cheaper
However, not all prices increased. Inflation for fuel and power decreased to 0.69 percent in August. It was 144.6 in July, falling to 143.6 in August. Electricity prices dropped by 2.91 percent, while mineral oil prices saw a slight decrease of 0.07 percent. Coal prices remained stable compared to July. Inflation for crude petroleum and natural gas stood at 0.43 percent in August.
Furthermore, prices of base metals, computers, electronic and optical products, apparel, wood products, and furniture also decreased. This had a positive impact on the wholesale inflation rate, but the overall WPI increased due to rising prices of food and manufacturing products.
Current State of Retail Inflation
The Retail Inflation Rate (CPI) also increased this month. In August, it reached 2.07 percent, compared to 1.55 percent in July. This indicates that inflationary pressure has also increased at the consumer level.
This increase in inflation could be a cause for concern for both consumers and businesses. Consumers' purchasing power might be affected, while manufacturers and wholesalers may become cautious in their production and sales decisions.
