Wholesale inflation eases to 0.13% in September: Key takeaways

Domestic wholesale inflation eased to 0.13 per cent in September from 0.52 per cent in the previous month, official data showed on Tuesday. The sequential easing was driven by easing price pressures in several categories, including food products, electricity, primary articles, and manufactured goods. The moderation suggests that input costs are stabilising, bringing some relief to producers and consumers alike.

Wholesale inflation — also known as headline inflation — is the rate of increase in the prices of select goods and services. It is measured by the Wholesale Price Index (WPI). 

The latest WPI reading comes days after separate data showed consumer inflation in the country was recorded at an eight-year low of 1.54 per cent with easing food prices. 

Within the latest WPI data set, some groups staged an increase in inflation, while others experienced a decline. To understand the current trend, let’s look at the specific sectors where inflation has risen or fallen: 

• The wholesale inflation rate has been eased to 0.13 per cent in September, earlier it was 0.52 per cent in August. 
• Food inflation eased from 0.21 per cent to -1.99 per cent (MoM), showing a sharp down in food prices during September. This fall was mainly driven by lower prices of vegetables, cereals, minerals and edible oils. The easing food inflation is a positive sign for consumers as it helps reduce overall price pressures and supports household budgets.
• Primary articles WPI declined from -2.10 per cent to -3.32 per cent (MoM), reflecting a deeper fall in the prices of key commodities such as food grains, crude oil, and minerals. This indicates that the overall cost of raw materials has reduced further, which could help lower input costs for manufacturers and ease inflationary pressure in the coming months.
• Primary articles WPI fell from -2.10 per cent to -3.32 per cent (MoM), mainly due to lower prices of food grains, crude oil, and minerals. The decline signals easing input costs, which could help reduce overall inflationary pressure.
• Manufactured products WPI fell from 2.55 per cent to -2.33 per cent, showing a slowdown in industrial product prices. This easing can reduce production costs for businesses, potentially lowering retail prices and easing inflationary pressure on consumers.

Read also: September 2025 Inflation Data: India’s CPI hits 8-year low at 1.54% as food prices fall

Which sector saw a rise in inflation?

Fuel and power WPI rose from -3.17 per cent in August to -2.18 per cent in September, showing a rise in energy prices compared to the previous month. The slower pace of decline was largely due to higher fuel and electricity costs. 

This upward movement could slightly raise transportation and production expenses, influencing overall price levels in the coming months.

Apart from fuel and power, Core inflation also rose from 1.7 per cent to 1.8 per cent in September, indicating a slight rise in underlying price pressures, excluding food and fuel.

This suggests moderate demand-driven inflation, which could influence monetary policy decisions and affect overall cost of living.