India’s Wholesale Inflation Turns Positive at 0.52% in August

Quick Summary:

• Wholesale Price Inflation (WPI): WPI rose to 0.52% in august 2025, marking a return to the positive zone after two months of negative inflation (-0.58% in July and -0.19% in June). This contrasts with 1.25% WPI inflation recorded in August last year.
• Contributors to Positive Inflation: The increase was driven by higher prices of food products,manufacturing items,non-food articles,non-metallic mineral products,and transport equipment.
• Food Price Deflation: Deflation in food articles lessened from -6.29% in July to -3.06% in August; vegetable deflation was reported at -14.18%,compared to -28.96% the previous month.
• Manufactured Products Inflation: Inflation within manufactured items rose from 2.05% (July) to 2.55%.
• Fuel and Power: Negative inflation or deflation grew deeper for fuel and power (-3.17%) compared to July’s figure of -2.43%.
• Retail Inflation: Retail inflation had previously climbed slightly after nine months of decline, reaching 2.07%, fueled by rising kitchen item costs like vegetables, meat, fish, and eggs.
• RBI Policy Rates: The Reserve Bank of India kept its benchmark policy interest rate unchanged at 5.5%.

!Image Description: File image showing vegetable price trends cited as relevant data source

Indian Opinion Analysis:

The return of WPI inflation into positive territory signals evolving economic dynamics that warrant close attention for both policymakers and industry stakeholders in India’s economy during September’s fiscal updates.

Key drivers include food article price revisions-especially vegetables-and increased costs for manufactured goods alongside a persistent decline observed within fuel sectors.While the retail inflation rate remains relatively subdued at below growth-stifling meant stable.