India’s annual wholesale inflation rate turned positive in August, rising to 0.52% compared to -0.58% in July. However, it was below last year’s rate of 1.25%. After two months of contraction, it increased due to a rise in prices of food products and manufactured goods.
The Wholesale Price Index (WPI) for food turned positive, moving from -2.15% in July to 0.21% in August.
According to an official press release, the positive rate of inflation is due to an increase in the prices of food products, other manufacturing, non-food articles, other non-metallic mineral products, and other transport equipment, among other items.
The Wholesale Price Index (WPI) for August 2025 showed mixed trends across major categories. The Primary Articles index rose to 1.60% in August from 1.02% last month. Prices increased for non-food articles increased to 2.92%, minerals came in at 2.66%, and food articles by 1.45%, while crude petroleum and natural gas fell to 0.43%.
The Fuel & Power group declined to 0.69% as electricity and mineral oil prices dropped, while coal prices remained unchanged. Manufactured Products turned positive to 0.21% from -0.21 last month.
Thirteen sub-groups, including food products, textiles, and electrical equipment, reported price increases, while five groups, such as basic metals and electronics, saw declines, according to the press release.
CPI data for August
India’s retail inflation rose to 2.07% in August from 1.55% in July, snapping a nine-month decline, mainly on higher food prices.
Food inflation widened to -0.69% from -1.76% in July. Vegetable prices increased by 15.92%, while pulses decreased by 14.53%.
Despite the uptick, inflation remains well within the Reserve Bank of India’s 4% target, with the central bank maintaining a cautious but positive outlook.
RBI’s next policy meeting takes place between September 29 and October 1. The central bank is largely expected to maintain the status quo on interest rates.
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