India’s wholesale inflation, measured by the Wholesale Price Index (WPI), fell to 2.05% in March 2025 from 2.38% in February, marking a steady cooling in wholesale prices. The data, released by the Ministry of Commerce & Industry, shows moderation across key segments, notably food and primary articles, while manufactured goods inflation rose marginally. Fuel and power, which remained in the red for the past several months, finally turned positive.
WPI March 2025 Breakdown:
Food Index Inflation falls to 4.66% (vs 5.94% in Feb):
The sharp drop was largely driven by a steep decline in vegetable prices:
- Vegetables: -15.88% vs -5.80% in February
- Cereals: 8.24% vs 8.69%
- Pulses: 15.62% vs 17.71%
- Milk: 4.12% vs 5.14%
- Fruits: 1.62% vs 2.50%
Manufactured Products Inflation rises to 3.07% (vs 2.86%):
Rising input costs kept pressure on core wholesale prices:
- Basic metals: 3.70%
- Food products: 2.25%
- Textiles: 1.18%
- Chemicals: 2.76%
This uptick comes despite easing commodity prices globally and indicates latent cost pressures.
Fuel & Power Inflation back in green at 0.20% (vs -0.71%):
- HSD (Diesel): -4.64%
- LPG: -11.61%
- Electricity: +6.82%
This marks the first positive print in several months, driven by electricity price adjustments.
Primary Articles Inflation dips to 0.76% (vs 2.81%):
- Crude Petroleum & Natural Gas: -2.85%
- Non-food articles: -3.49%
- Minerals: -12.36%
Key Takeaway:
The softening WPI mirrors the moderation in consumer inflation (CPI), which was reported at 4.85% in March. The sustained fall in wholesale prices — especially food — could bring further relief, though the uptick in manufacturing inflation and a rebound in fuel inflation warrant close monitoring amid global uncertainties.
| WPI Component | March 2025 (%) | February 2025 (%) |
|---|---|---|
| Overall WPI | 2.05 | 2.38 |
| Food Index | 4.66 | 5.94 |
| Fuel & Power | 0.20 | -0.71 |
| Manufactured Goods | 3.07 | 2.86 |
| Primary Articles | 0.76 | 2.81 |
The WPI data will be crucial in the RBI’s assessment of inflation trends and future monetary policy stance, especially as core inflation pressures linger in manufacturing despite headline moderation.
