The persistent decline in Wholesale Price Index (WPI) inflation since December 2024 is a positive sign for higher economic growth in India, said Mr. Hemant Jain, President, PHDCCI, in a press release issued here today.
WPI inflation has softened to (-)0.13% in June 2025 from 2.57% in December 2024, fostering optimistic business sentiment. This trend is expected to reduce operational costs for companies, boost domestic demand, and support economic growth, he added.
The fall in prices of primary articles from (-)2.02% in May 2025 to (-)3.38% in June 2025, fuel and power from (-)2.27% in May 2025 to (-)2.65% in June 2025, and manufactured products from 2.04% in May 2025 to 1.97% in June 2025 has contributed to the decline in WPI, said Mr. Jain.
Food inflation has eased from 5.83% in January 2025 to (-)3.75% in June 2025, driven by falling prices of cereals, vegetables, pulses, fruits, eggs, meat & fish, and milk, he added.
Looking ahead, considering the rise in domestic demand, expectations of a normal monsoon, and strong overall economic activity in the country, we anticipate WPI inflation to remain moderate in the coming months despite ongoing geopolitical uncertainties, said Mr. Jain.