India’s Wholesale Price Index (WPI)-based inflation slowed to 0.13% in September 2025, down from 0.52% in August, according to data from the Commerce Ministry. The moderation reflects a continued softening in manufacturing and food prices, though select sectors like textiles and transport equipment saw mild upticks. Economists view the trend as a sign of stable supply conditions and easing input costs.
Core Development
WPI inflation eased to 0.13% year-on-year, led by manufactured food products, textiles, and transport equipment.
The moderation follows a steady decline since June, when WPI hit a four-month peak at 0.5%.
Non-food articles saw minor price increases, indicating stabilisation in the commodities segment.
This marks the fifth consecutive month of sub-1% wholesale inflation, suggesting contained cost pressures in the industrial ecosystem.
Key Drivers / Issues
Softer global commodity prices and stable fuel costs.
Supply-side resilience supported by improved logistics and inventory management.
Seasonal moderation in agriculture-linked inputs.
Base effect from last year’s volatile inflation cycle.
Stakeholder Impact
Manufacturers are benefiting from lower input costs, supporting profit margins. Consumers can expect downstream price stability, while policymakers gain more flexibility in managing inflation risks.
Industry & Policy Reactions
Economists said the data confirms that India’s wholesale inflation is well under control, providing headroom for policy continuity. They cautioned, however, that food and energy prices remain volatile, warranting close monitoring.
Challenges Ahead
Managing potential spikes in crude oil and commodity prices.
Ensuring that WPI moderation translates into retail inflation relief.
Maintaining fiscal stability amid upcoming policy spending cycles.
Strategic Outlook
The easing WPI trend strengthens India’s case for policy stability and growth support. With inflation well within comfort levels, the focus could shift to industrial output and investment acceleration through the festive season.
Why This Matters
A low and stable wholesale inflation rate signals economic resilience, helping maintain consumer confidence and macroeconomic balance as India targets sustained growth.
