India's Wholesale Price Inflation Remains In Negative Territory For Second Consecutive Month

New Delhi, Aug 14 (KNN) India's wholesale price inflation (WPI) recorded a negative 0.58 percent in July 2025, marking the second consecutive month of deflation, according to government data released Thursday. 

The decline was driven primarily by falling prices in food articles and fuel sectors, despite an uptick in manufacturing costs.

The July figure represents a deepening of deflationary pressure compared to the negative 0.13 percent recorded in June 2025. 

This contrasts sharply with the positive 2.10 percent inflation registered in July 2024, highlighting the significant shift in pricing dynamics over the past year.

The Ministry of Industry attributed the negative inflation rate to decreased prices across multiple sectors, including food articles, mineral oils, crude petroleum and natural gas, and basic metals manufacturing. 

Food articles experienced particularly pronounced deflation at 6.29 percent in July, intensifying from the 3.75 percent deflation observed in June.

Vegetable prices showed the most dramatic decline within the food category, with deflation reaching 28.96 percent in July compared to 22.65 percent in the previous month. 

This steep drop in vegetable prices contributed significantly to the overall deflationary trend in wholesale markets.

The manufacturing sector bucked the broader trend, with inflation in manufactured products rising to 2.05 percent in July from 1.97 percent in June. 

This increase in manufacturing costs stood in contrast to the deflationary pressures affecting other major components of the wholesale price index.

Fuel and power sectors continued to experience negative inflation, recording deflation of 2.43 percent in July, though this was marginally less severe than the 2.65 percent deflation registered in June. 

The persistent weakness in energy prices reflected ongoing adjustments in global commodity markets.

In related monetary policy developments, the Reserve Bank of India maintained its benchmark policy rate at 5.5 percent earlier this month. 

The central bank's decision considered retail inflation data, which showed consumer price inflation dropping to 1.55 percent in July, reaching an eight-year low and providing additional context for the broader disinflationary environment affecting the Indian economy.

(KNN Bureau)