India’s WPI inflation cooled to 0.13% in September 2025 from 0.52% in August, driven by sharp drops in food and fuel prices. Onion and potato prices see steep declines.
India’s WPI inflation eased significantly to 0.13% in September 2025, down from 0.52% in August, as per data released by the Ministry of Commerce and Industry on Tuesday. The sharp fall in food and fuel prices played a key role in pulling the Wholesale Price Index (WPI) down to its lowest level in months.
Food Inflation Slips Into Negative Territory
The food index, known for its high volatility, entered deflationary territory, registering a 1.99% year-on-year decline in September. This marks a steep fall from the 0.21% increase recorded in August.
Among key contributors to the food price drop:
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Vegetable prices plunged 24.4%
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Onions dropped 63.8%
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Potatoes fell 42.2%
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Pulses declined by 17.2%
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Fruit prices contracted 4%
On the other hand, protein-rich foods such as meat, fish, and eggs saw a mild increase in inflation, rising to 1.27%, reflecting resilient demand despite easing prices in other food categories.
Fuel and Power Prices Stay in Negative Zone
Inflation in the fuel and power category also remained in the negative zone, contracting 2.58% in September compared to a 3.17% drop in August.
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Crude petroleum inflation stood at –7.45%
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LPG prices declined nearly 8%
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Petrol and diesel prices remained relatively subdued
This consistent decline in fuel prices provided relief amid global energy market volatility.
Manufactured Goods Inflation Remains Steady
Manufactured products, which make up the largest share of the WPI basket, saw a relatively stable inflation rate of 2.33%, slightly down from 2.55% in August.
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Highlights within the manufacturing sector:
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Food product inflation eased to 4.56% (from 7.15%)
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Edible oils and processed foods contributed to the decline
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Chemicals, pharmaceuticals, and basic metals showed modest inflationary pressure
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Non-metallic minerals and cement recorded firm pricing trends
Primary Articles Index Declines
The primary articles index dropped 3.32%, reflecting weaker agricultural commodity prices. However, mineral prices bucked the trend, with inflation rising to 6.77%, the highest in the past six months.
Outlook: WPI Inflation Likely to Remain Soft
Economists suggest that wholesale inflation will likely remain subdued in the coming months, thanks to:
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A favorable base effect
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Continued moderation in global commodity prices
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Weak food and fuel inflation
This downward trend in wholesale prices bodes well for the overall inflation outlook, which may provide policy space for the Reserve Bank of India in its future rate decisions.