India's wholesale inflation turns negative in June after over 2 years

In April 2023, the wholesale inflation went into negative territory. Similarly, in the initial days of COVID-19, in July 2020, the WPI was reported to be negative.

The negative rate of inflation in June 2025 was primarily due to a decrease in prices of food articles, mineral oils, manufacture of basic metals, crude petroleum, and natural gas, the commerce ministry said.

In 2023, Wholesale Price Index-based inflation turned negative for seven consecutive months. Notably, the wholesale price index (WPI)- based inflation had been in double digits for 18 months in a row till September 2022, before declining.

Economists often say a little rise in wholesale inflation is good as it typically incentivizes goods manufacturers to produce more.

DPIIT releases index number of wholesale price in India on monthly basis on 14th of every month (or next working day, if 14th falls on holiday) with a time lag of two weeks of the reference month, and the index number is compiled with data received from institutional sources and selected manufacturing units across the country.

Meanwhile, continuing its downward trend, consumer price inflation in India hit an over six-year low in May, in respite to common people.

According to the statistics ministry, the year-on-year inflation rate based on Consumer Price Index (CPI) for May was 2.82 per cent (provisional). It is the lowest year-on-year inflation since February 2019.

It was a decline of 34 basis points in the headline inflation of May in comparison to April 2025. The retail inflation rate is within the Reserve Bank of India's (RBI) manageable range of 2-6 per cent.

The retail inflation for June is expected later today.

Retail inflation last breached the Reserve Bank of India's 6 per cent upper tolerance level in October 2024. Since then, it has been in the 2-6 per cent range, which the RBI considers manageable.

Inflation has been a concern for many countries, including advanced economies, but India has largely managed to steer its inflation trajectory well. The RBI held its benchmark repo rate steady at 6.5 per cent for the eleventh consecutive time, before cutting it first time in about five years in February 2025.

Analysts expect inflation to remain under control, allowing the RBI to focus on supporting economic growth. The recent 50 basis points repo cut was quite an indication.

The inflation outlook for the year 2025-26 has been revised downwards from RBI's earlier forecast of 4 per cent to 3.7 per cent. (ANI)