Wholesale Inflation Eases to 0.13% in September, Driven by Fall in Food Prices

India’s wholesale inflation continued to remain subdued in September 2025, with the Wholesale Price Index (WPI)rising just 0.13% year-on-year, according to data released by the Ministry of Commerce and Industry. The moderation was mainly due to a sharp decline in prices of primary and food articles, offset partly by higher prices of manufactured goods and certain fuel categories.

The all-commodities WPI stood at 154.9 (base year 2011-12 = 100), compared to 154.7 in August 2025. On a month-to-month basis, the index recorded a decline of 0.19%, indicating mild deflationary movement.

Key Components of the WPI

Primary Articles

The index for primary articles fell by 3.32% year-on-year, reflecting lower prices for food grains, vegetables, and pulses.

• Food articles declined 1.99% from the same month last year.
• The WPI for food index (food articles + food products) stood at 192.0 in September, down from 193.5 in August.
• Prices of vegetables, pulses, and oilseeds dropped, while onions and potatoes showed a rise compared to the previous month.

Fuel and Power

The index for fuel and power remained relatively stable, with minor month-to-month fluctuations linked to global crude and energy price movements.

Manufactured Products

Manufactured goods, which carry the highest weight in the WPI basket, rose 2.33% year-on-year. The index increased from 144.9 in August to 145.2 in September.

• Price increases were reported in food products, textiles, electrical equipment, and non-metallic mineral products.
• Declines were seen in rubber and plastic products, motor vehicles, and pharmaceuticals.

Overall, 10 out of 22 manufacturing industry groups showed a rise in prices, 6 declined, and 6 remained unchangedduring the month.

Data Revisions

The WPI for July 2025 has been finalized at 154.4, reflecting a –0.58% inflation rate for that month.
The Ministry stated that the response rate for September’s data was 80.2%, and the index remains provisional for up to 10 weeks after release to allow for revisions.

Trend Summary (April–September 2025)

During the first half of FY2025–26 (April to September), the average wholesale inflation stood at 0.14%, indicating overall price stability in the economy.

This stability comes after a period of mild deflation during 2024–25, when global commodity volatility and domestic supply adjustments had pulled down wholesale prices across sectors.

Implications for Jharkhand

Industrial Sector

Jharkhand’s economy, driven largely by steel, mining, and heavy manufacturing, could benefit from the current inflation trend. Stable input costs and mild price increases in manufactured goods may support margins for industries in Bokaro, Jamshedpur, and Adityapur.

The rise in prices of non-metallic mineral products and electrical equipment aligns with the state’s expanding base in cement, steel fabrication, and engineering components.

Agriculture

Falling prices of vegetables, cereals, and pulses have direct implications for Jharkhand’s farming community. Districts such as Palamu, Giridih, Koderma, and Ranchi—where smallholder farmers depend on seasonal crops—may experience reduced income realization despite stable or high input costs.

The trend underscores the need for better procurement mechanisms and storage facilities to protect farmers from volatility in wholesale prices.

Trade and Retail

Lower wholesale prices for essential food items could eventually reflect in retail prices if the downward trend continues. For consumers, this may provide some relief from household inflation, though gains could be uneven across districts due to transport and supply chain costs.

Economic Outlook

Analysts note that the steady WPI, combined with a moderate Consumer Price Index (CPI), points toward a balanced inflation environment for now. However, future trends will depend on:

• Seasonal food price movements post-harvest
• Global crude oil and energy costs
• Demand trends in the manufacturing sector

The next WPI release for October 2025 will indicate whether the moderation continues or reverses during the festive and procurement seasons.

At a Glance: September 2025 WPI Highlights