- WPI inflation eases to 2.05% in March, down from 2.38% in February.
- Food inflation declines sharply, with vegetable prices seeing major deflation.
- Manufactured products and fuel prices register marginal uptick.
India’s wholesale price index (WPI) inflation eased to 2.05% in March 2025, reflecting a cooling trend in price pressures. This moderation was largely driven by a significant drop in food inflation, particularly vegetables, which saw a deflation of 15.88%.
On the other hand, inflation in manufactured goods rose to 3.07% from 2.86% a month earlier. This signals a rise in production costs across key sectors like food products, textiles, and metals.
Mixed Trends in Inflation: Food Cools, Manufacturing and Fuel Pick Up
According to data released by the Commerce and Industry Ministry, the WPI inflation rate stood at 2.05% in March 2025. This reflects a slowdown from February’s 2.38%. Despite the decline, inflation remains significantly higher than the 0.26% recorded in March 2024. It indicates a year-on-year upward pressure.
A substantial cooling in primary articles, including food and non-food items, helped pull down the overall index. The primary articles category saw a 1.07% month-on-month drop. This was driven by lower prices of crude petroleum, natural gas, and essential agricultural commodities.
The manufactured products segment, which holds the largest weight in the WPI basket, showed a modest uptick. Sixteen out of twenty-two manufacturing subgroups saw price increases. This suggests stronger demand and potentially higher input costs feeding into end-product pricing.
The fuel and power category also contributed to the overall inflation stabilization. Although electricity prices dropped, coal prices remained stable. The index as a whole moved slightly into inflationary territory after witnessing deflation in the prior month.
The March 2025 WPI data highlights diverging trends. Food prices offered relief. However, manufacturing and fuel components reflect underlying cost pressures. These could influence future pricing dynamics.
“Inflation is the one form of taxation that can be imposed without legislation.” — Milton Friedman
