Good News for Consumers? WPI Inflation Drops in January 2025, Food Prices Fall, Fuel and Manufacturing See a Rise

WPI Inflation: The Wholesale Price Index (WPI) inflation in India eased slightly to 2.31% in January 2025, down from 2.37% in December 2024, according to the latest data from the Commerce and Industry Ministry. The decline was driven mainly by a drop in food prices, while fuel and manufacturing sectors saw a rise.

Food Prices Fall, Primary Articles See a Decline

The WPI for primary articles fell by 2.01% in January 2025 compared to the previous month. This was mainly due to a 3.62% drop in food prices. However, not all categories saw a decline. The prices of crude petroleum and natural gas increased by 6.34%, while non-food articles rose by 0.66% and minerals by 0.22%.

Fuel and Power Inflation Rises

Despite the overall slowdown in WPI inflation, fuel and power inflation increased by 0.47% in January. This was due to higher fuel costs, although the price of coal remained unchanged from December 2024.

Manufacturing Sector Records Marginal Growth

Manufactured products, which account for 64.23% of the WPI index, recorded a 0.14% increase in January 2025. Among the 22 manufacturing groups, 15 witnessed price increases, while five saw a decline, and two remained unchanged.

Key industries that experienced a rise in prices included machinery and equipment, chemicals, pharmaceuticals, and medical products. Meanwhile, prices fell in sectors such as basic metals, fabricated metal products, wearing apparel, beverages, and transport equipment.

The WPI Food Index inflation also declined, falling from 8.89% in December 2024 to 7.47% in January 2025, reflecting the overall downward trend in food prices.