Wholesale Price Inflation drops further to (-) 0.13% in June on lower food, fuel prices
New Delhi, July 14: Inflation measured in terms of Wholesale Price Index (WPI) has dropped and turned negative 0.13 per cent in the month of June from 0.39 per cent in the previous month that in May. This is negative for the first time since the beginning of this year. The negative rate of inflation is mainly on account of decrease in prices of food articles, fuel and power and basic metals, according to the data released by the Ministry of Commerce & Industry on Monday.
In June, the Reserve Bank of India (RBI) had cut the key lending rate by 50 basis points to 5.5 per cent in view of positive growth outlook and also comfort on the inflationary pressures in the country. The WPI based inflation turning negative, may prompt the RBI for another cut in the interest rate. Next meeting of the Monetary Policy Committee is scheduled in August this year.
The food index, which comprises the majority of the WPI basket (24.38%), consisting of ‘Food Articles’ from Primary Articles group and ‘Food Product’ from Manufactured Products group have increased from 189.5 in May, 2025 to 190.2 in June, 2025. But the rate of inflation based on WPI Food Index decreased from 1.72% in May, 2025 to (-0.26%) in June, 2025, as on an annual basis, vegetable prices were down, with the onions prices falling 33.49 per cent, and potatoes declining by 32.67 per cent.
The index for Primary Articles (Weight 22.62%) increased by 0.81% to 185.8 (provisional) in June, 2025 from 184.3 (provisional) for the month of May, 2025. Price of minerals (1.49%), non-food articles (1.26%) and food articles (0.82%) increased in June, 2025 as compared to May, 2025. The price of Crude Petroleum & Natural Gas (-0.44) decreased in June, 2025 as compared to May, 2025, the official data said.
Fuel & Power (Weight 13.15%): The index for this major group declined by 2.52% to 143.0 (provisional) in June, 2025 from 146.7 (provisional) for the month of May, 2025. The price of electricity (-9.10%), mineral oils (-0.54%) and coal (-0.07%) decreased in June, 2025 as compared to May, 2025.
Manufactured Products (Weight 64.23%): The index for this major group declined by 0.07% to 144.8 (provisional) in June, 2025 from 144.9 (provisional) for the month of May, 2025.
In June while announcing the bi-monthly monetary policy, the RBI had cut the key lending rate by 50 basis points to 5.5 per cent in view of positive growth outlook and also comfort on the inflationary pressures in the country.
The RBI had said, the outlook for inflation points towards benign prices across major constituents. The record wheat production and higher production of key pulses in the Rabi crop season should ensure adequate supply of key food items. Going forward, the likely above normal monsoon along with its early onset augurs well for Kharif crop prospects.
Reflecting this, inflation expectations are showing a moderating trend, more so for the rural households. Most projections point towards continued moderation in the prices of key commodities, including crude oil. Notwithstanding these favourable prognosis, the RBI had said that it needs to remain watchful of weather-related uncertainties and still evolving tariff related concerns with their attendant impact on global commodity prices.
Taking all these factors into consideration, and assuming a normal monsoon, the Central Bank had cited a continued moderation in price pressures, mainly driven by softer food costs. It had projected further easing in FY26, offering relief to consumers. The Bank revised its FY26 inflation forecast to 4%, down from its earlier projection of 4.2%.
Quarter-wise projections showed inflation expected to average 3.6% in the first quarter, 3.9% in the second quarter, 3.8% in the third quarter, and 4.4% in the final quarter of FY26.
