India’s wholesale price index (WPI)-based inflation dropped to a 14-month low of 0.39 per cent in May 2025, down from 0.85 per cent recorded in April, according to official data released on Monday. The decline was driven by easing prices across key categories, including food, fuel, and primary articles.
"Positive rate of inflation in May 2025 is primarily due to increase in prices of manufacture of food products, electricity, other manufacturing, chemicals and chemical products, manufacture of other transport equipment and non-food articles, etc," the industry ministry said in a statement.
The inflation rate for primary articles declined to -2.02 per cent in May from -1.44 per cent in April, while the WPI core inflation (which excludes food and fuel) eased to 0.9 per cent from 1.5 per cent a month earlier.
India's WPI inflation
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WPI food index
WPI food inflation in May cooled to 1.72 per cent, compared to 2.55 per cent in April, reflecting a moderation in wholesale food prices. The WPI food index has increased from 189.3 in April to 189.5 in May.
Prices of primary food articles fell by 1.56 per cent in May, marking the second consecutive month of decline. This drop was largely driven by steep decreases in the prices of vegetables (-21.6 per cent), pulses (-10.4 per cent), potatoes (-29.4 per cent), and onions (-14.4 per cent). Protein-rich items such as eggs, meat, and fish also saw a 1.01 per cent decline for the second straight month. Meanwhile, the rate of price increase slowed for cereals (2.56 per cent), paddy (0.96 per cent), and wheat (5.75 per cent) during the same period.
WPI inflation in May: Fuel and power
The WPI inflation rate for fuel and power fell deeper into negative territory at -2.27 per cent in May, against -2.18 per cent in April. The index for this key category fell by 0.95 per cent to 146.7 in May 2025, down from 148.1 in April 2025. During the same period, the price of mineral oils dropped by 2.06 per cent, while the prices of coal and electricity rose by 0.81 per cent, and 0.80 per cent, respectively. Manufacturing sector
Inflation in manufactured goods stood at 2.04 per cent in May, easing from 2.62 per cent recorded in April.
The decline in wholesale price inflation follows closely on the heels of retail inflation, which dropped to a 75-month low of 2.82 per cent in May. This moderation was largely driven by a sharp fall in vegetable prices and the steepest drop in pulse prices seen in more than six years.
What is India’s inflation outlook for 2025?
During its bi-monthly monetary policy review in April, the Reserve Bank of India (RBI) projected consumer price index (CPI)-based inflation at 4 per cent for the ongoing financial year (FY26), assuming a normal monsoon. For the first quarter (April-June), inflation is expected to moderate further to 3.6 per cent, a notable revision from the previous estimate of 4.5 per cent.
The RBI’s quarterly inflation projections for FY26 are as follows:
-Q1: 3.6 per cent
-Q2: 3.9 per cent
-Q3: 3.8 per cent
-Q4: 4.4 per cent
The wholesale price index (WPI) data for June 2025 will be released on July 14, 2025.
