Wholesale inflation eases to 0.85% in April on lower fuel, primary article prices

Wholesale price-based inflation eased to 0.85% in April 2025 from 2.05% in March, driven by a sharp decline in fuel and primary article prices, according to official data released by the Commerce and Industry Ministry on Wednesday.

The annual rate of inflation based on the All-India Wholesale Price Index (WPI) stood at 0.85%(provisional) in April, down from 2.05% recorded in March and 2.38% in February. On a year-on-year basis, WPI inflation stood at 0.26% in April 2024.

The moderation in April was primarily because of declining prices in major components such as fuel and primary articles, though inflation in manufactured products, including food items, continued to show an uptick.

Among the major categories, the index for Primary Articles (weight: 22.62%) dipped 0.11% month-on-month to 184.4 in April from 184.6 in March. This was led by declines in crude petroleum & natural gas (-5.31%) and non-food articles (-1.78%), partially offset by an increase in prices of minerals (7.81%) and food articles (0.36%).

The Fuel and Power segment (weight: 13.15%) saw a significant drop of 2.82% in April to 148.1, from 152.4 in March. Prices of mineral oils and electricity fell by 3.95% and 1.38%, respectively, while coal registered a modest price rise of 0.22%.

Manufactured Products (weight: 64.23%), on the other hand, recorded a 0.35% increase, with the index rising to 144.9 in April from 144.4 in March. Prices rose in 16 out of 22 NIC two-digit groups, including chemicals and chemical products, basic metals, machinery and equipment, and other manufacturing. However, a decline was noted in items such as textiles, pharmaceuticals, paper products, and apparel.

The WPI Food Index (weight: 24.38%), which combines food articles from primary articles and food products from manufactured goods, rose marginally from 188.8 in March to 189.3 in April. However, the annual inflation based on the food index eased to 2.55% in April, down from 4.66% in March.

The WPI data for May 2025 is scheduled to be released on June 16, 2025.