Big relief to the general public!
Good news is coming out from the inflation front for the country. Wholesale inflation in India touched the lowest level of 20 months in June 2025. According to the latest government data, the wholesale price index (WPI) based inflation was 0.13% on an annual basis, the lowest after October 2023. In May, this rate was 0.39%, that is, the graph of inflation came down rapidly. The government data released on Monday made it clear that inflation has been controlled due to the fall of food and drink prices. Reuters’ survey of Economists had estimated that inflation could increase by 0.52% in June, but it remained less than that.
Relief in kitchen prices
The fluctuations in the prices of food items played a big role in bringing the wholesale inflation down. The inflation rate of vegetables in June was 22.65%, which was slightly less than 21.62% in May. Onion inflation was 33.49%, which was 14.41% in May. Potato prices were recorded by 32.67%, while it was 29.42% less in May. Prices of pulses fell 22.65%, which was 10.41% less in May. Grain inflation was also 3.75%, which was 2.56% in May. Overall, the common man has been relieved due to cheap kitchen goods.
Decrease in fuel and electricity prices
The decrease in fuel and electricity prices also kept inflation under control. Inflation of this segment was 2.65% in June, which was 22.27% in May. That is, there has been a huge decrease in fuel and electricity prices. At the same time, manufactured products, which are more than 60% of the WPI basket, were 1.97% of their inflation. Inflation of primary goods (primary articles) declined by 3.38% in June, while in May it was 2.02% less.
Retail inflation is also at six years low
Along with wholesale inflation, retail inflation also came to a six-year low of 2.82% in May 2025. It has decreased by 34 basis points as compared to April. This is the lowest retail inflation rate since February 2019. Cheap food and drink made a big contribution to it.
RBI’s inflation estimate
The Reserve Bank of India (RBI) Monetary Policy Committee (MPC) had said in the April meeting that inflation is decreasing due to soft food prices. RBI reduced inflation from 4.2% to 4% for FY26. According to quarterly estimates, inflation is expected to be 3.6% in the first quarter, 3.9% in the second, 3.8% in the third and 4.4% in the last quarter. RBI believes that the risks of inflation are still balanced.
News of relief for common man
Cheap vegetables, pulses and fuel are news of relief for the common man. A decrease in manufacturing products and fuel prices can reduce the cost of many sectors. Experts say that if this trend of inflation continues, consumers can get more relief. However, long -term negative negatives can also become a cause of concern for the economy. The next WPI figures will come on 14 August 2025, which will further clean the market direction.