FX.co ★ India Wholesale Prices Rise More than Expected

In August 2025, wholesale prices in India increased by 0.52% year-over-year, exceeding market expectations of a 0.30% rise. This marks a recovery from the 0.58% decline observed in July, which was the steepest drop since July 2023, and represents the highest wholesale inflation rate since April. The increase was chiefly driven by a rebound in food prices and accelerated growth in manufacturing costs. Food prices rose by 0.21% in August, a significant recovery from their most substantial drop since August 2015, when they decreased by 2.15%. This rise was led by higher prices for wheat (4.75%), milk (2.58%), and cereals (1.03%). Simultaneously, manufacturing inflation climbed to 2.55% in August, up from 2.05% in July, marking the fastest growth in this sector in four months. Notable increases were seen in food products (7.15% compared to 6.74% previously), other non-metallic mineral products (3.00% compared to 2.69% in July), and cement, lime, and plaster (4.23% compared to 3.42%). Conversely, fuel prices continued their decline, decreasing by 3.17% compared to a 2.43% fall previously. On a monthly basis, wholesale prices rose by 0.52% in August, following a 0.46% increase in July.