India’s wholesale inflation dropped to 0.85% in April 2025, the lowest it has been in 13 months. This means prices of goods at the wholesale level are rising very slowly — or even falling — compared to the previous year.
The drop in inflation is mainly because of two reasons:
- Crude oil prices have fallen.
- Food prices, especially vegetables, have become cheaper.
The Wholesale Price Index (WPI), which measures inflation at the wholesale level, was last lower in March 2024. So, this is the lowest point in over a year.
Read More: Retail Inflation Drops to 3.34% in March – Lowest in Nearly 6 Years
raw materials like crops and crude oil saw prices drop by 1.44% in April. This is the first time in almost two years that prices in this category have actually gone down.
Here’s a breakdown of what caused this drop:
- Crude oil and natural gas prices fell by a big 15.55%, the lowest in 22 months.
- Food prices dropped by 0.85%.
- Vegetable prices fell sharply by 18.26%.
- Potato prices were 24.3% lower than in April last year.
The overall food group, which includes food items from both raw and processed categories, had an inflation rate of just 2.55%, which is also the lowest in nearly two years.
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The fuel and power category (which includes LPG, petrol, and diesel) also saw prices fall:
- LPG prices fell by 0.41%
- Petrol prices dropped by 7.7%
- Diesel prices went down by 5.04%
lower prices of crude oil, fuel, and food have helped bring down wholesale inflation in the country.
