India’s Wholesale Inflation Hits Negative 0.13% in June

Quick Summary

• Wholesale price inflation (WPI) in India declined to (-) 0.13% in June 2025, compared to 0.39% in May and 3.43% in June last year.
• Deflation was observed across food articles (-3.75%), fuel and power (-2.65%), and manufactured products (1.97% inflation, slightly down from May’s 2.04%).
• Vegetables experienced notable deflation at -22.65%, as compared to -21.62% in the previous month.
• The Industry Ministry stated that the negative rate of inflation is due to decreased prices of food articles, mineral oils, basic metal manufacturing, crude petroleum & natural gas.
• Retail inflation data for June is expected later today; this metric considerably influences RBI’s monetary policy decisions.
• in response to easing inflation trends,the RBI recently cut interest rates by 0.50%, bringing benchmark policy rates down to 5.50%.

Indian Opinion Analysis

the continued decline in wholesale price inflation signals significant deflationary tendencies across key sectors like food articles and fuel prices,which could bring relief for producers but require balancing measures for consumer demand stability via retail markets.

The sharp drop in vegetable prices indicates oversupply or reduced demand dynamics that policymakers may need to watch closely for broader economic effects on agriculture-dependent livelihoods.

recent adjustments by the Reserve Bank of India are indicative of its confidence amid easing wholesale market pressures; however, upcoming retail inflation data could influence future monetary policy actions more directly.

These developments underscore India’s evolving macroeconomic landscape requiring vigilance from both government bodies and central banks on balancing growth with price stability.

Read more: The Hindu