October 14, 2025: India’s Wholesale Price Index (WPI) inflation eased sharply to 0.13% in September, reflecting a slowdown in the wholesale price rise after months of elevated inflationary pressures. The latest data, released by the Ministry of Commerce and Industry, indicates a moderation in price pressures across several key sectors, providing some relief to businesses and policymakers.
September’s WPI reading marks a significant decline from 1.23% in August, signaling a cooling trend in wholesale prices. Analysts suggest that the moderation has been driven by a drop in prices of fuel and manufactured goods, while food articles showed moderate increases.
Breaking down the data, the primary articles segment — which includes food, non-food items, and minerals — rose by 0.9% year-on-year in September, down from 1.2% in August. In contrast, fuel and power prices contracted by 1.8%, reflecting easing global crude oil costs and stable domestic fuel supplies. Manufactured products saw a modest increase of 0.2%, indicating stability in industrial goods prices.
Economists believe the easing WPI inflation could ease input cost pressures for manufacturers, potentially benefiting consumers if these trends pass through to retail prices. “The slowdown in wholesale inflation is a welcome development, particularly for sectors like FMCG and manufacturing. It signals that inflationary pressures are gradually moderating,” said Ramesh Menon, Senior Economist at a leading financial services firm.
The Reserve Bank of India (RBI) has been monitoring inflation trends closely as part of its monetary policy framework. While Consumer Price Index (CPI) inflation is the key determinant for policy rates, WPI trends provide insights into input costs and producer price pressures. Analysts note that sustained easing in WPI may support a more accommodative policy stance in the coming months.
Food inflation at the wholesale level has also shown moderation, with vegetables, cereals, and pulses seeing smaller price increases compared to previous months. However, seasonal fluctuations and supply chain disruptions could still impact certain categories in the short term.
Experts caution that while WPI inflation is easing, global economic conditions — including crude oil price volatility, currency fluctuations, and commodity trends — remain key determinants of price stability in India. “Monitoring both domestic and global drivers is critical, as inflation trends can shift rapidly with external shocks,” added Menon.
The government has attributed part of the easing to effective supply chain management, stable domestic production, and government interventions in essential commodities. Efforts to maintain buffer stocks and ensure smooth logistics have helped prevent sharp price spikes in essential commodities like sugar, wheat, and edible oils.
Business leaders have welcomed the easing inflation, noting that reduced wholesale price pressures could translate into more predictable costs for manufacturers. “Lower WPI inflation helps in planning production and pricing strategies. It could also support consumption demand if retail prices remain stable,” said Anita Sharma, CEO of a major FMCG company.
While the easing is positive, analysts suggest that close monitoring is needed in the coming months, especially given potential monsoon variability, international commodity price movements, and global supply chain uncertainties. The overall trajectory of inflation will play a key role in shaping economic recovery, consumer confidence, and policy decisions.
In summary, WPI inflation eased to 0.13% in September, reflecting moderation in fuel and manufactured product prices while primary articles saw moderate increases. This slowdown is expected to ease input cost pressures and provide some relief to manufacturers and consumers alike.
Summary
India’s WPI inflation cooled to 0.13% in September, driven by lower fuel and manufactured goods prices, offering relief to businesses and potentially easing input cost pressures for consumers.