India’s wholesale inflation, measured by the Wholesale Price Index (WPI), rose to 0.52% in August 2025 after staying negative for two consecutive months, official data showed on Monday.
The Ministry of Commerce and Industry attributed the uptick primarily to rising prices of food products, non-food articles, other manufacturing, non-metallic minerals, and transport equipment. Economists note that a mild rise in wholesale inflation is often considered healthy as it encourages businesses to produce more.
The release comes alongside last week’s retail inflation figures, which showed the Consumer Price Index (CPI) edging up to 2.07% in August from 1.55% in July, still within the RBI’s comfort band of 2–6%. Food inflation remained slightly negative at -0.69%, though vegetables, eggs, meat, fish, and edible oils saw price increases.
Kerala, Karnataka, Jammu and Kashmir, Punjab, and Tamil Nadu recorded the highest year-on-year retail inflation rates.
Despite the modest uptick, economists and industry experts believe the inflation rise is temporary, with the RBI’s revised outlook for FY 2025–26 lowering the inflation forecast to 3.7% from 4%, supported by recent GST reforms and stable monetary policy.