In July 2025, the country's Wholesale Price Index (WPI) decreased to -0.58%. This decline was primarily due to lower prices of food articles, mineral oils, crude petroleum, and basic metals. Compared to June, the WPI saw a slight increase of 0.39%. The food inflation rate also stood at -2.15% on an annual basis.
New Delhi: In July 2025, the country's Wholesale Price Index (WPI) fell to -0.58%, indicating a decrease in prices in the wholesale market. The main reasons for this decline were the fall in prices of food articles, mineral oils, crude petroleum, natural gas, and basic metals. However, the WPI increased by 0.39% compared to June 2025. There was a mixed effect in fuel and electricity, and a decrease of 0.14% was recorded in manufactured products, while the food inflation rate was -2.15% on an annual basis.
Prices of Primary Articles
In July 2025, the prices of primary articles increased by 1.18 percent. This included a 2.56 percent increase in the prices of crude petroleum and natural gas, a 2.11 percent increase in non-food articles, and a 0.96 percent increase in food articles. Meanwhile, mineral prices decreased by 1.08 percent.
This change in the prices of primary articles affects various market needs. In particular, industries dependent on fuel are affected by fluctuations in oil and gas prices.
Mixed Impact of Fuel and Electricity
The fuel and electricity group saw an increase of 1.12 percent. Mineral oil became more expensive by 1.98 percent, but coal became cheaper by 0.44 percent and electricity by 0.36 percent. This had a mixed impact on the wholesale inflation rate.
According to experts, changes in fuel and electricity prices directly affect manufacturing and transportation costs. This time, the balance in prices provided some relief to businesses.
Decline in Manufactured Products
A decrease of 0.14 percent was recorded in the manufactured goods group. Out of 22 categories, prices increased in 9, decreased in 9, and remained unchanged in 4.
Sectors that saw an increase included transport equipment, furniture, and non-metallic mineral products. On the other hand, basic metals, metal products, food products, and chemicals saw a decline. Its effect is directly visible on the industrial sector, as the cost of many construction and production activities has decreased.
Decline in Food Inflation Rate
In July, the WPI Food Index stood at 191.3, which is higher than June's 190.2. Despite this, on an annual basis, the food inflation rate decreased from -0.26 percent in June to -2.15 percent in July.
This reduction in food inflation is a welcome sign for consumers, as the benefit of cheaper wholesale prices directly reaches the retail market and consumers.
May 2025 Figures Finalized
The final WPI figure for May 2025 was 153.7, and the inflation rate was 0.13 percent. The Department for Promotion of Industry and Internal Trade releases the WPI figures every month. The figures for August 2025 will be released on September 15.
According to experts, WPI figures not only reflect wholesale inflation but also help in determining market direction and policy-making.
