Wholesale inflation in June 2025: The wholesale inflation rate has come down to zero once again after 19 months due to a decrease in the cost of products manufactured with a fall in food items and fuel prices. In June, the wholesale inflation rate i.e. inflation was recorded -0.13 percent. This information has been received from the government data released on Monday. The wholesale Price Index (WPI) based inflation was at 0.39 percent in May and 3.43 percent in June 2024. The Ministry of Industry said in a statement, “The main reason for the decrease in inflation in June 2025 was soft in the prices of foods, mineral oils, manufacturing of original metals, raw petroleum and natural gas etc.”.
The price of vegetables recorded drastically in June
According to the bulk inflation data, the prices of food items declined by 3.75 percent in June as compared to 1.56 percent in May. The prices of vegetables also recorded a huge decline. Vegetable prices decreased by 22.65 percent in June. In May, the inflation rate of vegetables declined by 21.62 percent. Inflation was 1.97 percent in terms of manufactured products, compared to 2.04 percent in May. Fuel and electricity wholesale inflation was 2.65 percent in June, which was 2.27 percent in May.
Retail inflation reached 6 years low
Senior Economist Rahul Aggarwal of rating agency ICRA said that the seasonal gradual increase in food prices in July 2025 has yet been comparatively low, which is expected to soften the food prices, unless there is a sudden rapid increase in prices of vegetables etc. in the rest of the months. The RBI takes care of retail inflation, mainly in June 2025 when formulating monetary policy, which declined to 6 years low 2.1 percent. The RBI had reduced the repo rate by 0.50 percent last month amid softening in inflation, after which the repo rate increased to 5.50 percent.
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