By Siddhi Nawar
India’s Wholesale Price Index (WPI) inflation eased to 2.05% in March 2025 from 2.38% in February, according to the Ministry of Commerce and Industry. This marks a continued downward trend following a peak earlier in the fiscal year.
India’s wholesale price inflation rose to 2.38% in February 2025, up from 2.31% in January, marking an eight-month high since June 2024. This uptick was driven by rising prices in manufactured food products, food articles, other manufacturing, non-food articles, and textiles.
Primary Articles and Food Index Trends
Primary Articles, which carry a 22.62% weight in the WPI basket, saw the index decline 1.07% to 184.6 in March from 186.6 in February. This fall was driven by price drops in Crude petroleum & natural gas (-2.42%), Non-food articles (-2.40%) and Food articles (-0.72%)However, prices of minerals registered a marginal rise of 0.31%.
Fuel & Power, with a 13.15% weight, also registered a month-on-month drop of 0.91%, with the index falling to 152.4 in March from 153.8 in February. The price decline was largely due to a fall in Electricity (-2.31%) and Mineral oils (-0.70%). Coal prices remained unchanged.
Manufactured Products, which account for the largest share at 64.23%, increased by 0.42%, with the index rising to 144.4 in March from 143.8 in February. Out of the 22 NIC two-digit groups, 16 showed an increase in prices, 5 registered a decline, while 1 remained unchanged.
Sectors contributing to the price increase included basic metals, food products, other transport equipment, and machinery. Meanwhile, declines were seen in textiles, chemicals, electronics, and furniture.
The WPI Food Index, which includes both food articles and food products, slipped slightly from 189.0 in February to 188.8 in March. Consequently, food inflation eased to 4.66% from 5.94% in February, indicating some relief in food price pressures.
Overall, the moderation in prices of primary articles and food items contributed to the decline in WPI inflation, although underlying pressures persist due to firming prices in manufactured goods.
Wholesale inflation tracks the changes in prices at the wholesale level, before goods reach the consumer, it reflects the average price change in goods sold in bulk, including food, fuel, and manufactured products.
Unlike retail inflation, which captures the price changes felt by consumers, wholesale inflation provides insight into cost trends impacting producers and distributors.
A sharp rise in wholesale prices can indicate supply chain disruptions or increasing production costs, while a decline may suggest reduced demand or stability in supply.
Movement of WPI so far in FY25:
