Wholesale Inflation Remains Negative For Second Straight Month; Retail Inflation Sees 8-Year Low

Wholesale price inflation (WPI) stayed in negative territory for the second consecutive month at (-) 0.58 per cent in July, as prices of food articles and fuel saw deflation, even though prices of manufactured items increased, government data showed on Thursday.

WPI-based inflation was (-) 0.13 per cent in June. It was 2.10 per cent in July last year.

"Negative rate of inflation in July, 2025 is primarily due to decrease in prices of food articles, mineral oils, crude petroleum & natural gas, manufacture of basic metals etc," the industry ministry said in a statement.

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As per WPI data, food articles saw a deflation of 6.29 per cent in July, as against a deflation of 3.75 per cent in June, with vegetables witnessing a sharp drop.

Deflation in vegetables was 28.96 per cent in July, compared to 22.65 per cent in June.

In the case of manufactured products, inflation was higher at 2.05 per cent in July, as against 1.97 per cent in the month before.

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Fuel and power saw a negative inflation or deflation of 2.43 per cent in July, as against 2.65 per cent in June.

The Reserve Bank of India (RBI), which takes into account retail inflation, had kept benchmark policy rates unchanged at 5.5 per cent earlier this month. The retail inflation in July dropped to an 8-year low of 1.55 per cent.