June WPI Data: India’s Wholesale Inflation Data Plungest To A Two-Year Low At -0.13%

India's Wholesale Price Index (WPI) inflation for June dropped to a negative 0.13%. This decline was attributed to deflation in food articles and fuel sectors, while manufactured products saw reduced costs, according to official data released on Monday. In May, WPI inflation was recorded at 0.39%, whereas it stood at 3.43% in June of the previous year.
"Negative rate of inflation in June, 2025 is primarily due to decrease in prices of food articles, mineral oils, manufacture of basic metals, crude petroleum & natural gas etc," stated the industry ministry in its official communication as reported by PTI.

Food and Fuel Sector Deflation

Food articles experienced a deflation of 3.75% in June compared to a deflation of 1.56% in May. Vegetables showed a notable deflation of 22.65% in June, up from 21.62% in May. The fuel and power sector also registered a negative inflation rate or deflation of 2.65% in June, which was deeper than May's deflation rate of 2.27%.

The Reserve Bank of India (RBI) mainly considers retail inflation when making monetary policy decisions. The figures for June's retail inflation are expected to be released later today.

Impact on Manufactured Products

For manufactured products, the inflation rate was slightly lower at 1.97% compared to May's rate of 2.04%. This reduction contributed to the overall decline in WPI inflation for June.

Last month, the RBI reduced the benchmark policy interest rates by a significant margin of 0.50%, bringing it down to 5.50%. This decision was influenced by the declining trends observed in inflation rates.

The WPI figures highlight the ongoing economic adjustments within India's market sectors, reflecting changes in pricing dynamics across various commodities and industries.

Primary Articles and Fuel & Power

In the primary articles category, which holds a weight of 22.62%, there was a 0.81% increase in the index from May to June 2025. Prices rose for minerals by 1.49%, non-food articles by 1.26%, and food articles by 0.82%. However, crude petroleum and natural gas saw a price drop of 0.44% during the same period.

The fuel and power sector experienced a significant decline of 2.52% in its index, dropping to 143.0 in June from May's figure of 146.7. Electricity prices fell sharply by 9.10%, while mineral oils decreased by 0.54% and coal by 0.07%.

Manufactured Products and Food Index

Manufactured products, which constitute a substantial portion of the WPI at 64.23%, saw a minor decrease of 0.07% in their index for June compared to May's figures. Among the various groups within this category, some like machinery and equipment experienced price increases, while others such as basic metals and food products witnessed declines.

The food index rose slightly from May to June, moving from 189.5 to 190.2, yet the inflation rate based on this index dropped from 1.72% to -0.26%. This indicates that while prices increased month-over-month, they were lower compared to the previous year.

Detailed Commodity Analysis

Within primary articles, food items like cereals showed mixed trends; wheat prices fell by 0.63%, whereas paddy saw a small rise of 0.10%. Vegetables had notable fluctuations with potatoes increasing by 5.18% but onions decreasing by 17.82%. Fruits also faced an overall price drop of 8.52%.

In manufactured products, out of the total groups assessed, half experienced price hikes including pharmaceuticals and electronic products, while others like tobacco products and rubber goods saw reductions in their prices.

Response Rate and Future Releases

The response rate for compiling June's WPI stood at an impressive 86.7%, ensuring reliable data collection across various sectors nationwide. The final figures for April were based on a higher response rate of 96.2%. These provisional numbers are subject to revision following established policies.

The next release date for WPI data is set for August 14th, covering July's statistics as per the Department for Promotion of Industry and Internal Trade (DPIIT) schedule.
The comprehensive data provided offers insights into economic trends affecting different commodity groups over recent months, helping stakeholders make informed decisions based on current market conditions.