FX.co ★ India Wholesale Prices Unexpectedly Drop

In June 2025, India's wholesale prices saw an unexpected decline of 0.13% year-on-year, diverging from the anticipated 0.52% increase and reversing the 0.39% growth observed in May. This decrease marks the first annual drop in wholesale prices since October 2023. The decline was largely attributed to a reduction in food prices, which decreased for the first time since June 2023, registering a drop of 0.26%, compared to a 1.72% rise in May. This was largely precipitated by significant price decreases in onions (down 33.49%), potatoes (down 32.67%), and vegetables (down 22.65%). Additionally, fuel prices recorded a substantial decline of 2.65%, marking the most significant fall in five months, following a 2.27% decrease in May. This added additional downward pressure on wholesale prices. Furthermore, manufacturing inflation slowed to 1.97%, down from 2.04% in May, reaching its lowest point since October 2024. This was a result of softer cost increases across most subcomponents. Notable slowdowns were seen in sectors such as paper and paper products, with inflation at 1.52%, down from 1.67%, food products at 6.99%, down from 8.45%, and rubber and plastic products at 0.47%, down from 0.94%.