India’s wholesale price index (WPI)-based inflation eased to 2.05% in March 2025, down from 2.38% in February, according to data released by the Ministry of Commerce & Industry on Monday, April 15. This marks a continued moderation in WPI inflation after peaking in recent months.
Key Highlights:
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Overall WPI inflation: 2.05% in March vs. 2.38% in February
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Food index inflation: 4.66% in March vs. 5.94% in February
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Fuel & power inflation: 0.20% vs. -0.71% in February
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Manufactured products inflation: 3.07%, up from 2.86%
The softening was primarily driven by a sharp drop in vegetables inflation (-15.88% YoY) and a moderation in cereals, milk, and pulses. However, manufactured products saw a pickup in inflation, indicating persistent input cost pressures.
On a month-on-month (MoM) basis, the WPI declined by 0.19%, continuing the sequential decline seen in February (-0.13%).
Sectoral Overview:
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Primary articles saw a YoY inflation of 0.76%, down from 2.81% in February.
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Fuel & power index increased 0.20% YoY, reversing the deflationary trend last month.
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Manufactured products recorded a YoY inflation of 3.07%, led by price rises in basic metals, food products, and chemicals.
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Vegetables inflation dropped significantly, falling from -5.80% in February to -15.88% in March.
Month-over-Month (MoM) Changes:
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Primary articles: -1.07%
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Fuel & power: -0.91%
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Manufactured products: +0.42%
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Food index: -0.11%
The WPI Food Index, comprising food articles and manufactured food products, saw its inflation decline to 4.66% in March from 5.94% in February, primarily due to cooling prices of vegetables, eggs, and fish.
