Wholesale inflation in India cooled down to a 13-month low of 0.85% in April 2025, thanks to lower prices of food, fuel, and some manufactured items. This is a drop from 2.05% in March and 1.19% in April last year, according to government data released on Tuesday.
WHY ARE PRICES FALLING?
The fall in wholesale prices is mostly because food and fuel costs have come down. Even though there’s still a slight rise in prices overall, the increase is much slower.
The government explained that some price hikes in manufactured food products, chemicals, machinery, and transport equipment kept inflation in positive territory.
MANUFACTURED GOODS AND FUEL SEE A SHIFT
Manufactured products, which make up the biggest chunk of the wholesale price index, saw a price rise of 2.62% in April. Prices of primary articles rose more slowly at 1.44%, while the fuel and power segment actually got cheaper, falling by 2.18% after seeing a small rise the month before.
FOOD PRICES SHOW BIG CHANGES
The biggest relief was seen in everyday kitchen items. Vegetables became a lot cheaper, with prices dropping over 18% in April. Onion inflation almost vanished, going from a steep 26.65% in March to just 0.20%. Potatoes, too, became cheaper, with prices falling over 6%.
