Wholesale inflation declined in October, reaching a 27-month low due to a decline in food prices, fuel prices, and manufactured goods.

Wholesale Inflation India: Wholesale inflation declined in October, reaching a 27-month low of minus 1.21 percent, driven by a decline in food prices, fuel prices, and manufactured goods.

Wholesale Price Index (WPI) inflation was 0.13 percent in September and 2.75 percent in October 2024. The Ministry of Industry said in a statement, "The decline in inflation in October 2025 was primarily due to softening prices of food items, crude petroleum and natural gas, electricity, mineral oils, and basic metals manufacturing."

Learn what the data says.

According to the Wholesale Price Index (WPI) data, food inflation declined by 8.31 percent in October compared to 5.22 percent in September. Prices of onions, potatoes, vegetables, and pulses declined. Vegetable inflation declined by 34.97 percent in October from 24.41 percent in September. Pulses declined by 16.50 percent in October, while potato and onion prices declined by 39.88 percent and 65.43 percent, respectively.

Inflation in manufactured products declined to 1.54 percent from 2.33 percent in September. Fuel and electricity prices declined by 2.55 percent in October, compared to a decline of 2.58 percent in the previous month. Paras Jasrai, Executive Director, India Ratings & Research, said, "The decline in wholesale inflation is expected to continue for the remainder of FY 2025-26 due to a favorable comparative base."

Benefits of GST Reform

India Ratings estimates that wholesale inflation will decline below one percent in November 2025. Following the reduction in Goods and Services Tax (GST) rates, effective September 22nd, wholesale price index (WPI)-based inflation declined as expected. As part of the tax rate rationalization, GST rates on daily use items were reduced, reducing the four-tier tax structure to two categories of 5 percent and 18 percent.

The tax reduction lowered commodity prices, and a favorable inflation base from last year led to a decline in both wholesale and retail inflation. Retail inflation in October was at an all-time low of 0.25 percent, driven by the reduction in GST rates and a high base from last year. Retail, or consumer price index-based inflation, was 1.44 percent in September.