Ira Singh
Khabar Khabaron Ki,14 July’25
India’s wholesale price inflation (WPI) turned negative in June at -0.13%, driven by decline in food and fuel prices along with easing costs of manufactured products, government data released on Monday showed.This marks a reversal from the previous month’s inflation of 0.39% and is significantly lower than the 3.43% recorded in June 2024.According to the Ministry of Commerce and Industry, “The negative rate of inflation in June 2025 is primarily due to the decrease in prices of food articles, mineral oils, manufacture of basic metals, crude petroleum & natural gas, etc.”
Key Drivers of June WPI Deflation
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- Food Articles:The food category witnessed a deflation of 3.75% in June, deepening from 1.56% in May. A sharp fall in vegetable prices was a major contributor, with vegetable inflation at -22.65%, slightly steeper than May’s -21.62%.
- Fuel and Power: This segment continued to see deflation, with prices falling by 2.65% in June, compared to a 2.27% deflation in the previous month.
- Manufactured Products: Price rise in manufactured goods eased marginally to 1.97% in June, down from 2.04% in May, adding to the downward pressure on wholesale inflation.
While WPI offers insights into price trends at the wholesale level, the Reserve Bank of India (RBI) primarily relies on retail inflation data, which is expected later in the day, to shape monetary policy decisions.According to information,last month, the RBI cut the benchmark repo rate by 50 basis points to 5.50% in response to easing inflation trends and to support economic growth. The latest WPI data is likely to reinforce expectations of a continued softening in inflationary pressures.Experts will keep a close watch on the upcoming CPI data to see if retail prices are also falling, which could affect the RBI’s next decision.
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