Wholesale price inflation fell to a 27-month low of (-) 1.21% in October, led by a sharp deflation in food items like pulses and vegetables, and lower prices of fuel and manufactured items, government data showed on Friday. Wholesale Price Index (WPI)-based inflation was 0.13% in September and 2.75% in October last year. The decline was primarily driven by a sharp fall in the prices of food items, crude petroleum & natural gas, electricity, and manufactured goods
Key Data for October 2025
Key Drivers of the October 2025 Data
Food Items Deflation:Prices of food articles experienced significant deflation, especially vegetables (-34.97%), potatoes (-39.88%), and onions (-65.43%).
Fuel & Power:This category continued to see deflation on an annual basis, with prices for electricity and mineral oils also falling in comparison to the previous year.
Manufactured Products:The inflation rate in this category eased to 1.54% from 2.33% in September, with price decreases noted in basic metals, chemicals, and motor vehicles
About WPI in India
The WPI measures price changes of goods at the producer or wholesale level and is published monthly by the Office of the Economic Adviser (OEA), Ministry of Commerce and IndustryThe Reserve Bank of India (RBI) uses the consumer priceindex (CPI) as its primary measure for monetary policy decisions and inflation targeting, not the WPI. However, the WPI is still an important indicator for analyzing price movements in industry, manufacturing, and construction, and serves as a GDP deflator.
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