NEW DELHI (TIP)- India’s wholesale inflation eased in September after a sharp rise in the previous month, helped by a decline in food and fuel prices, provisional data from the commerce and industry ministry showed. The wholesale price index (WPI)-based inflation fell to 0.13% in September, from 0.52% in August, after staying in negative territory in July -0.58% and June -0.19%. Economists polled by Reuters had projected the wholesale price index to rise 0.50% year-on-year in September.
A year earlier, WPI inflation stood at 1.91%. Food inflation, a key driver of the index, turned negative at -1.99% in September, compared with 0.21% in August, -2.15% in July, and -0.26% in June. The fall in September was led by lower prices of vegetables, wheat, pulses, and oilseeds. Prices of cereals and paddy also declined from the previous month.
Overall, food articles saw prices fall 5.22% in September, compared with a 3.06% decline in August.
Non-food articles rose 3.14%, down from 5.56% growth a month earlier. Fuel and power prices slipped 2.58% in September, compared with a 3.17% drop in August, while prices of manufactured products increased 2.33%, compared with a rise of 2.55% in the prior month.
“A sharp decline in food prices, down 2% year-over-year in September 2025, was a significant factor in pulling down wholesale inflation. Vegetable prices saw the steepest drop within the food segment, plummeting 24.4% year-over-year in September 2025 (August 2025: up 0.2% year-over-year). The fuel and power segment also recorded deflation of 2.6% in September 2025, marking the sixth consecutive month of decline,” said Paras Jasrai, associate director at India Ratings and Research.
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