India’s Wholesale Inflation Falls To -0.58% in July, Lowest In Two Years

WPI Food Index dropped sharply in July, pushing wholesale inflation deeper into negative territory for the second month at -0.58%.

Wholesale inflation in India eased to a two-year low of -0.58% in July, due to a fall in mineral oils, crude petroleum & natural gas, manufacture of basic metals prices. The WPI print remains in the negative territory for the second consecutive month. It stood at -0.13% in June.

WPI Food Index inflation remains negative, from -0.26% in June to -2.15% in July.

WPI Inflation Breakdown

The Primary Articles category came in at 1.18% in July, from 0.54% in the previous month. 

Within this, the price of crude petroleum and natural gas (2.56%), non-food articles (2.11%) and food articles (0.96%) increased in July against the previous month. In contrast, the price of minerals (-1.08%) decreased in July as compared to June.

Meanwhile, the fuel and power category came at 1..12% against 0.07% in June.  The price of coal (-0.44%) and electricity (-0.36%) decreased in July as compared to June.

And in the manufactured products category, inflation remained at -0.14% month-on-month (MoM).

Earlier this week, government data showed that India's annual retail inflation slowed to 1.55% in July from 2.1% in June, the lowest in eight years. It also marked a ninth straight month of declines, led by a steep drop in food prices, even as fuel costs saw a marginal increase. 

RBI’s Inflation Outlook

The Reserve Bank of India (RBI) had maintained the repo rate at 5.5% in its August Monetary Policy Committee (MPC) meeting. The RBI lowered its FY26 inflation projection to 3.1%, with CPI inflation at 2.1% in June 2025.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<