Wholesale Price Inflation Turns Negative in June at (-)0.13%: What It Means India’s wholesale price inflation (WPI) dropped to -0.13% in June 2025, according to the latest data released by the government. This is a big shift because WPI was 0.59% in May 2025, and now it has fallen into negative territory. But what does this mean? Why does it matter? And how does it affect common people, businesses, and the economy?
Let’s break this down in simple words.
What is Wholesale Price Inflation?
Wholesale price inflation measures the change in prices of goods that are sold in bulk usually from manufacturers to retailers. It tracks how the prices of products like food, fuel, and manufactured goods are changing at the wholesale level, not retail (where customers like you and me buy).
So, if wholesale prices go up, it means inflation is rising. If they go down or become negative, it means prices are falling — that’s called deflation.
What Does (-)0.13% Mean?
A WPI of (-)0.13% means that, on average, prices of goods sold in bulk fell slightly in June 2025 compared to June 2024.
This is not a major drop, but it’s important because it signals a slowdown in inflation. A negative number means prices are not just rising slowly — they are actually going down.
Main Reasons for the Fall in WPI
The government report said that the fall in wholesale price inflation in June was mainly because of:
- Cheaper food items
- Lower prices of fuel and power
- Less expensive manufactured products
1. Food Articles:
Prices of vegetables, onions, and fruits saw a fall. Some farm products saw a price drop due to better supply or lower demand.
2. Fuel & Power:
Oil prices (both global and domestic) were slightly down. This had a big impact since fuel costs affect transportation and production of many goods.
3. Manufactured Products:
Prices of items like steel, chemicals, and textiles also dropped, helping bring the overall inflation rate down.
WPI Data Snapshot – June 2025
| Sector | Inflation Rate (YoY) |
| Overall WPI | -0.13% |
| Food Articles | +2.37% |
| Fuel and Power | -2.10% |
| Manufactured Products | -1.24% |
| Primary Articles | +3.14% |
How Is WPI Different from CPI?
You may have also heard about CPI (Consumer Price Index). It measures retail inflation — the prices paid by customers like us.
- WPI is for bulk goods (wholesale).
- CPI is for goods and services bought by households (retail).
While WPI is now negative, CPI for June was 4.8%, which means retail prices are still rising but under control.
Is Falling WPI Good or Bad?
It depends:
Positive Side:
- It shows that inflationary pressure is reducing.
- Raw materials and fuel are cheaper for industries.
- May help bring down retail prices over time.
- Can support interest rate cuts by the RBI, which helps businesses and borrowers.
Negative Side:
- If it stays negative too long, it may mean low demand in the economy.
- Can affect company profits and slow down economic growth.
- Farmers and producers may earn less.
So, a mild fall in WPI is okay. But a long-term deflation could be worrying.
Government’s View
According to the Ministry of Commerce and Industry, the drop in WPI was mainly due to falling prices of fuel, basic metals, and some food items. They are watching the situation closely.
What Does It Mean for RBI and Policy?
The Reserve Bank of India (RBI) looks at both CPI and WPI while deciding interest rates. Since WPI has turned negative and CPI is under 5%, RBI may consider holding or cutting interest rates in the future.
Lower interest rates mean:
- Cheaper loans
- More spending
- Boost to business activity
What It Means for You and Me
- Food and fuel may become a bit cheaper.
- Businesses may get some relief in input costs.
- If RBI cuts rates, EMIs on home and car loans may reduce.
However, this may not happen immediately. Retail prices take some time to reflect wholesale changes.
Final Words
The drop in wholesale price inflation to -0.13% in June 2025 shows that price pressures in the economy are cooling down. While this is good for now, the government and RBI will keep a close eye to make sure that this doesn’t turn into a longer-term slowdown.
It’s a balancing act keeping inflation under control while ensuring the economy keeps growing.
