Wholesale inflation tanks to 14-month low, vegetable prices see sharp contraction

The annual rate of inflation based on All India Wholesale Price Index (WPI) number is 0.39% (provisional) for the month of May, 2025 (over May, 2024). 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. However, the latest reading marks a sustained fall in annual inflation trends as the WPI stood at 0.85% in April, 2025. WPI inflation fell to a 14-month low. Data showed that month over month change in WPI for the month of May, 2025 stood at - 0.06% as compared to April, 2025, after a contraction of 0.39% in previous month.

Primary Articles index decreased by 0.05 % to 184.3 (provisional) in May, 2025 from 184.4 (provisional) for the month of April, 2025. Price of minerals (-7.16%) and non-food articles (-0.63%) decreased in May, 2025 as compared to April, 2025. The price of food articles (0.56%) increased in May, 2025 as compared to April, 2025.

Fuel & Power index declined by 0.95% to 146.7 (provisional) in May, 2025 from 148.1 (provisional) for the month of April, 2025. Price of mineral oils (-2.06%) decreased in May, 2025 as compared to April, 2025. The price of coal (0.81%) and electricity (0.80%) increased in May, 2025 as compared to April, 2025.

Manufactured Products index remained unchanged at 144.9 (Provisional) in May, 2025.

WPI Food Index or Food Index consisting of 'Food Articles' from Primary Articles group and 'Food Product' from Manufactured Products group have increased from 189.3 in April, 2025 to 189.5 in May, 2025. However, the rate of annual inflation based on WPI Food Index decreased from 2.55% in April, 2025 to 1.72% in May, 2025. Data showed that vegetable prices contracted 21.62% while Onion inflation in the month of May eased by 14.41% and potato inflation stood at -29.42%. Inflation rate for pulses fell 10.41%. Fruits inflation rose 10.17% though.

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