India’s wholesale inflation eased in September, following a sharp rise the previous month, supported by falling food and fuel prices, according to provisional data from the commerce and industry ministry. The WPI-based inflation slowed to 0.13%, down from 0.52% in August, after remaining negative in July (-0.58%) and June (-0.19%). Economists surveyed by Reuters had expected a 0.50% rise. A year earlier, wholesale inflation was 1.91%.
Food inflation turned negative at -1.99%, led by lower prices of vegetables, pulses, wheat, oilseeds, and other food articles, which fell 5.22% compared with a 3.06% drop in August. Fuel and power prices also declined 2.58%, while manufactured products rose 2.33%. According to India Ratings and Research, the steep 24.4% fall in vegetable prices was the main factor cooling WPI. Core inflation rose to a 31-month high of 1.9%, driven by soaring jewellery prices. Analysts expect WPI deflation of around 0.5% in October 2025 due to a favourable base. Meanwhile, retail inflation dropped to 1.54% in September, its lowest since 2017, as easing food prices kept it below the RBI’s 2–6% target range.
