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<p data-start="74" data-end="415">The steady decline in the Wholesale Price Index (WPI) inflation since December 2024 is seen as a strong indicator of accelerated economic growth in India, according to economists. In May 2025, WPI inflation eased to a 14-month low of 0.39%, down from 0.85% in April and 2.05% in March, as per data from the Ministry of Commerce and Industry.</p>
<p data-start="417" data-end="640">Hemant Jain, President of PHDCCI, attributed the decline to falling prices in primary articles, fuel and power, and manufactured goods. He said this trend is likely to boost business confidence by lowering production costs.</p>
<p data-start="642" data-end="868">Key contributors to this easing include a drop in food article prices from -0.86% to -1.56%, a fall in petrol prices from 7.70% to -8.49%, and a dip in manufactured products inflation from 2.62% to 2.04% between April and May.</p>
<p data-start="870" data-end="1143">Rahul Agrawal, Senior Economist at ICRA, said that the decline in WPI inflation to 0.4% in May was supported by a favourable base effect and broad-based softening across sectors. WPI food inflation dropped to 1.7%&mdash;the lowest in 19 months&mdash;reflecting subdued price increases.</p>
<p data-start="1145" data-end="1386" data-is-last-node="" data-is-only-node="">Of the 22 food items tracked by the Department of Consumer Affairs, 20 showed lower inflation rates in June compared to May. This trend, along with base effects, is expected to keep WPI-food inflation on a downward path in the coming months.</p>
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The steady decline in the Wholesale Price Index (WPI) 

Cooling wholesale prices expected to boost India's economic growth and lower production costs

WPI Inflation Drops to 14-Month Low in May

Cooling wholesale prices expected to boost India's economic growth and lower production costs

June 16, 2025 | 20:42 IST

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