Wholesale inflation rises to 0.52% in August on costlier food and manufactured items

Wholesale inflation edged up to 0.52% in August 2025, marking a positive rate after a subdued trend, according to official data released by the Ministry of Commerce and Industry on the PIB on September 15, 2025.

The increase in the Wholesale Price Index (WPI) was primarily driven by higher prices of food products, non-food items, other manufacturing goods, non-metallic mineral products, and transport equipment. The ministry observed that this figure reflects price changes compared to August 2024, with detailed index figures and trends across commodity groups provided for the last three months.

"Year-on-year CPI inflation for August 2025 stood with RBI’s tolerance limit at 2.07%, despite international policy uncertainties," said Hemant Jain, President, PHDCCI, in a press statement issued here today.

The year-on-year inflation rate, based on the All-India Consumer Food Price Index (CFPI), stood at –0.69% (provisional) in August 2025 compared with August 2024, supporting the prevailing low CPI inflation, he noted.

He further highlighted that the softening in the prices in August 2025 for cereals and products, pulses & products, as well as moderation in clothing and footwear, housing, and fuel and light, in comparison to July 2025, have collectively helped keep inflation within RBI tolerance level, said Jain.

The index for primary articles rose by 1.6%, from 188 in July 2025 to 191 in August 2025. Prices of non-food articles (2.92%), minerals (2.66%), and food articles (1.45%) increased in August 2025 compared to July 2025. The price of Crude Petroleum & Natural Gas (-0.43%) declined in August 2025 compared to July 2025.

The index for fuel and power decreased by 0.69% from 144.6 in July 2025 to 143.6 in August 2025. The prices of electricity (-2.91%) and mineral oils (-0.07%) declined in August 2025 compared to July 2025. The price of coal remained unchanged from the previous month, according to the PIB press release.

On the other hand, the index for manufactured products rose by 0.21% from 144.6 in July 2025 to 144.9 in August 2025. Out of the 22 NIC two-digit groups for manufactured products, 13 groups experienced increases in prices, 5 groups saw decreases, and 4 groups remained unchanged.

Some key groups that experienced a month-on-month rise in prices included the manufacture of food products, textiles, electrical equipment, other transport equipment, and machinery and equipment. Conversely, groups that saw a decline in prices were the manufacture of basic metals, computer, electronic, and optical products, wearing apparel, wood and wood products, cork, and furniture, among others, in August 2025 compared to July 2025, according to the PIB press release.

The Food Index, comprising 'Food Articles' from the Primary Articles group and 'Food Products' from the Manufactured Products group, has increased from 191.3 in July 2025 to 193.5 in August 2025. The year-on-year inflation rate based on the WPI Food Index remains positive, moving from (-) 2.15% in July 2025 to 0.21% in August 2025.

"Looking ahead, we anticipate a further decline in CPI inflation, aided by the GST 2.0 reforms package. The proposed simplified two-tier structure will reduce production costs, translate into lower prices, and, in turn, stimulate consumption," Jain added.