FX.co ★ India Wholesale Inflation Falls More Than Expected

In May 2025, India's wholesale price inflation declined to 0.39%, falling below the anticipated slight decrease to 0.80% and down from 0.85% in April. This reflects the lowest inflation rate since March 2024. The slowdown was notably visible in food prices, which saw an increase of 1.72% compared to 2.55% in April, marking a nineteen-month low, primarily driven by a substantial 21.62% drop in vegetable costs. Inflation in the manufacturing sector also decelerated, reaching 2.04% from 2.62%, the lowest since November 2024. This trend indicates softer price growth across various subcomponents, notably paper and paper products (1.67% compared to 2.10%), food products (8.45% compared to 9.51%), and rubber and plastic products (0.94% compared to 1.64%). Furthermore, prices for fuel and power continued their downward trajectory, declining by 2.27% compared to 2.18%, influenced by reduced costs of petrol (down 8.49% from 7.70%) and HSD (down 5.61% from 5.04%). Additionally, the prices of primary articles dropped by 2.02%, following a 1.44% decrease in April. On a month-over-month basis, wholesale prices slightly declined by 0.06%, after a 0.19% decrease in the previous period.