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Business Standard
2 days ago
- Business
- Business Standard
Wholesale price inflation in negative territory, fuel and power index sees sharp drop
India's wholesale inflation came in at - 0.13% in June on an annual basis, marking the lowest rate recorded since October 2023, according to government data released today. Local inflation continues to fall, easing from 0.39% in May. Negative rate of inflation in June, 2025 is primarily due to decrease in prices of food articles, mineral oils, manufacture of basic metals, crude petroleum & natural gas etc. The month over month change in WPI for the month of June, 2025 also stood at - 0.19% as compared to May, 2025. Primary Articles index 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. Fuel & Power index declined by 2.52% to 143.0 (provisional) in June, 2025 from 146.7 (provisional) for the month of May, 2025. Price of electricity (-9.10%), mineral oils (-0.54%) and coal (-0.07%) decreased in June, 2025 as compared to May, 2025. Manufactured Products index declined by 0.07% to 144.8 (provisional) in June, 2025 from 144.9 (provisional) for the month of May, 2025. WPI Food Index 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. The rate of inflation based on WPI Food Index decreased from 1.72% in May, 2025 to (-0.26%) in June, 2025.
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Business Standard
2 days ago
- Business
- Business Standard
India's wholesale inflation drops to -0.13% in June on food, fuel prices
Wholesale Price Index (WPI) inflation dipped to -0.13 per cent in June, from 0.39 per cent in May, marking the first negative reading since the beginning of the year. The drop was largely driven by deflationary trends in food articles, fuel and power, and basic metals, according to the data released by the Commerce and Industry ministry on Monday. WPI-based inflation has been steadily easing since March and hit a 14-month low of 0.39 per cent the previous month. The WPI measures the average change in prices of goods sold in bulk and serves as a key indicator of inflation at the producer level. It reflects supply and demand trends across sectors such as agriculture, mining, and manufacturing. The WPI for all commodities stood at 153.8 in June, down from 154.1 in May. On a month-over-month basis, the index declined 0.19 per cent—a sharper fall compared to the 0.06 per cent contraction in May. WPI Food Index The food index, which comprises the majority of the WPI basket, declined by 0.26 per cent year-on-year, reversing the 1.72 per cent increase seen in May. This came despite a month-on-month increase in the Food Index to 190.2 from 189.5, supported by higher prices of vegetables, fruits, and milk. However, 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. Fuel and power Fuel and power prices also softened, with the group index declining 2.65 per cent year-on-year. Within this category, electricity prices dropped 9.10 per cent sequentially. Petrol and diesel fell 6.57 per cent and 5.12 per cent respectively in Jne 2025 compared to the same month last year. RBI FY26 inflation forecast The Reserve Bank of India (RBI) anticipates inflation to remain moderate. In its last monetary policy meeting, the central bank projected retail inflation at 3.7 per cent for FY26, down from its earlier estimate of 4 per cent. The quarterly inflation forecasts are as follows: Q1 FY26: 2.9 per cent Q2 FY26: 3.4 per cent Q3 FY26: 3.9 per cent Q4 FY26: 4.4 per cent While favourable trends in food production and commodity prices support this outlook, the RBI cautioned that weather-related disruptions and changing global tariffs could still pose inflationary risks.
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Business Standard
3 days ago
- Business
- Business Standard
Rupee slides to open at 86 mark amid tariff tensions; inflation data eyed
The Indian Rupee slipped on Monday, falling to the 86 mark as tariff tensions kept traders on edge ahead of the consumer price inflation print. The domestic currency opened 20 paise lower at 86 against the dollar on Monday, according to Bloomberg. The rupee has depreciated by 0.59 per cent against the greenback in the current financial year, and has witnessed 0.47 per cent depreciation in the current calendar year. The Indian rupee touched 83.90 on Friday before recovering to close at 83.80, marking a modest intra-day movement of 12 paise, analysts noted. While US President Donald Trump has imposed tariffs on several countries, India remains exempt for now, with negotiations ongoing to determine the potential tariff rate, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP, said. Traders remained cautious after Trump's announcement of a 30 per cent tariff on imports from the European Union and Mexico, set to take effect from August 1. The EU postponed its 30 per cent retaliatory tariffs against the US to allow for further talks. The dollar index, a measure of the greenback against a basket of six major currencies, was up 0.08 per cent at 97.93. Meanwhile, the 1-month non-deliverable forward suggested an opening in the 85.90–85.94 range, according to Reuters. Most Asian currencies and equities declined on Monday. "Exporters are expected to sell dollars near the 83.86–83.90 range as markets await further clarity from the Trump administration. Importers, meanwhile, are advised to wait for the State Bank of India's upcoming fundraise this week to potentially buy dollars at more favourable levels," Bhansali said. Macro data, including WPI Food Index, WPI Fuel, WPI Manufacturing, and retail inflation figures, will be keenly watched by investors. India's consumer price index (CPI)-based retail inflation rate is likely to have cooled further in June, thus remaining below the 4 per cent target of the Reserve Bank of India (RBI) for a fifth consecutive month, giving the central bank wiggle room to focus on growth. ALSO READ: In May, the retail inflation rate stood at a 75-month low of 2.82 per cent, while in June last year, it was 5.08 per cent. In commodities, crude oil prices extended gains as investors weighed the prospects of additional US sanctions on Russia, amid trade tensions. Brent crude price was up 0.18 per cent at $70.49 per barrel, while WTI crude prices were higher by 0.18 per cent at 68.57, as of 9:05 AM IST. ALSO READ:
Business Standard
16-06-2025
- Business
- Business Standard
Wholesale inflation tanks to 14-month low, vegetable prices see sharp contraction
The annual rate of inflation based on All India Wholesale Price Index (WPI) number is 0.39% (provisional) for the month of May, 2025 (over May, 2024). Positive rate of inflation in May, 2025 is primarily due to increase in prices of manufacture of food products, electricity, other manufacturing, chemicals and chemical products, manufacture of other transport equipment and non-food articles etc. However, the latest reading marks a sustained fall in annual inflation trends as the WPI stood at 0.85% in April, 2025. WPI inflation fell to a 14-month low. Data showed that month over month change in WPI for the month of May, 2025 stood at - 0.06% as compared to April, 2025, after a contraction of 0.39% in previous month. Primary Articles index decreased by 0.05 % to 184.3 (provisional) in May, 2025 from 184.4 (provisional) for the month of April, 2025. Price of minerals (-7.16%) and non-food articles (-0.63%) decreased in May, 2025 as compared to April, 2025. The price of food articles (0.56%) increased in May, 2025 as compared to April, 2025. Fuel & Power index declined by 0.95% to 146.7 (provisional) in May, 2025 from 148.1 (provisional) for the month of April, 2025. Price of mineral oils (-2.06%) decreased in May, 2025 as compared to April, 2025. The price of coal (0.81%) and electricity (0.80%) increased in May, 2025 as compared to April, 2025. Manufactured Products index remained unchanged at 144.9 (Provisional) in May, 2025. WPI Food Index or Food Index consisting of 'Food Articles' from Primary Articles group and 'Food Product' from Manufactured Products group have increased from 189.3 in April, 2025 to 189.5 in May, 2025. However, the rate of annual inflation based on WPI Food Index decreased from 2.55% in April, 2025 to 1.72% in May, 2025. Data showed that vegetable prices contracted 21.62% while Onion inflation in the month of May eased by 14.41% and potato inflation stood at -29.42%. Inflation rate for pulses fell 10.41%. Fruits inflation rose 10.17% though.
India Gazette
16-06-2025
- Business
- India Gazette
Wholesale inflation eases to 0.39% in May Vs 0.85% (MoM), food inflation lowered
New Delhi [India], June 16 (ANI): The wholesale inflation in the country continued to ease in May 2025, with the Wholesale Price Index (WPI)-based inflation falling to 0.39 per cent, down from 0.85 per cent recorded in April, according to the data released by the Ministry of Commerce & Industry on Monday. The annual rate of inflation, based on the All India WPI for May 2025 compared to May 2024, stood at 0.39 per cent (provisional). The ministry stated that the positive inflation rate during the month was mainly due to rising prices in sectors such as the manufacture of food products, electricity, other manufacturing items, chemicals and chemical products, other transport equipment, and non-food articles. The WPI Food Index, which includes 'Food Articles' from the Primary Articles group and 'Food Products' from the Manufactured Products group, increased slightly from 189.3 in April to 189.5 in May. However, the rate of food inflation slowed to 1.72 per cent in May, compared to 2.55 per cent in the previous month. Looking at major categories, the index for Primary Articles declined by 0.05 per cent to 184.3 in May, compared to 184.4 in April. Within this segment, prices of minerals dropped sharply by 7.16 per cent, and non-food articles fell by 0.63 per cent. However, food articles saw a modest price increase of 0.56 per cent month-on-month. In the Fuel & Power category, which holds a weight of 13.15 per cent in the WPI basket, the index dropped by 0.95 per cent to 146.7 in May from 148.1 in April. The decline was driven by a 2.06 per cent fall in mineral oil prices. On the other hand, prices of coal and electricity rose by 0.81 per cent and 0.80 per cent, respectively. As per the government data, the Manufactured Products category, which accounts for 64.23 per cent of the WPI, remained stable at 144.9 in May. Among the 22 manufacturing sectors, 10 reported an increase in prices, 9 saw a decline, and 3 remained unchanged. Sectors such as other manufacturing, non-metallic mineral products, electronics, pharmaceuticals, and textiles witnessed a rise in prices. Meanwhile, sectors like food products, basic metals, rubber and plastic products, chemicals, and electrical equipment recorded a fall in prices. The WPI data suggests a cooling trend in wholesale inflation, with mixed signals across sectors and moderating food inflation in May. The ministry also informed that the next WPI data for the month of June, 2025, would be released on 14/07/2025. (ANI)
