Wholesale Price Inflation Eases to 0.85% in April on Cooling Food, Fuel Prices

Deflation in vegetables and fuel brings relief; April sees the lowest retail inflation since 2019​

New Delhi, May 14 — India’s wholesale price inflation (WPI) eased sharply to 0.85 percent in April 2025, down from 2.05 percent in March, as prices of food articles, manufactured products, and fuel showed signs of cooling, according to data released by the Ministry of Commerce and Industry on Wednesday.

The latest figure also reflects a year-on-year decline, with WPI at 1.19 percent in April 2024.

Key Drivers Behind the Decline​

Despite the positive inflation rate, the ministry attributed April’s moderation primarily to rising costs in select segments such as:

• Manufacture of food products
• Chemicals and chemical products
• Transport equipment
• Machinery and equipment

However, these were offset by sharp deflation in several key categories:

• Food articles recorded a deflation of 0.86 percent in April, reversing from 1.57 percent inflation in March.
• Vegetables saw steep deflation at 18.26 percent, compared to 15.88 percent the previous month.
• Onion inflation dropped to 0.20 percent, a significant fall from 26.65 percent in March.

In the manufactured products segment, inflation slowed to 2.62 percent, down from 3.07 percent in the previous month.

Meanwhile, the fuel and power category registered a deflation of 2.18 percent, a reversal from 0.20 percent in March.

Retail Inflation at Record Low​

The Wholesale Price Index figures come a day after the Consumer Price Index (CPI) data showed retail inflation easing to 3.16 percent in April, the lowest since July 2019. The moderation was driven by subdued prices in vegetables, fruits, pulses, and other protein-rich items.

Implications for Monetary Policy​

With both wholesale and retail inflation easing, economists believe the Reserve Bank of India (RBI) now has more flexibility to cut interest rates further to support economic growth, which is under pressure due to external challenges like reciprocal tariffs from the US.

In April, the RBI already reduced the benchmark policy rate by 25 basis points to 6 percent, marking the second rate cut this year. The central bank now expects retail inflation to average 4 percent in the current fiscal year, down from its earlier projection of 4.2 percent.

If the inflation trend continues its downward trajectory, another rate cut could be announced at the next RBI monetary policy review in June.