Wholesale price inflation: However, manufactured products saw inflation of 2.62 per cent in April, compared to 3.07 per cent in March.
India’s wholesale price index (WPI)-based inflation dropped to 0.85 per cent in April 2025. This comes as prices of food articles, manufactured products, and fuel eased, government data showed on Wednesday.
WPI-based inflation was 2.05 per cent in March. It was 1.19 per cent in April last year. ” Positive rate of inflation in April, 2025 is primarily due to an increase in prices of manufacture of food products, other manufacturing, chemicals and chemical products, manufacture of other transport equipment and manufacture of machinery and equipment, etc,” the industry ministry said in a statement.
As per the WPI (Wholesale price index ) data, food articles saw a deflation of 0.86 per cent in April from an inflation of 1.57 per cent in March, with vegetables seeing a sharp drop. Deflation in vegetables was 18.26 per cent during April compared to deflation of 15.88 per cent in March. In onion, inflation eased to 0.20 per cent in April, as against 26.65 per cent in March.
While food inflation fell into negative territory, core manufactured goods still saw some persistence to 2.62 per cent because of chemicals, metals, and machinery.
According to Sankar Chakraborti, MD & CEO, Acuite Ratings & Research Limited, this, alongside retail inflation cooling to 3.16 per cent, reinforces our base case for further monetary easing.
“With growth steady and inflation staying well below target, the RBI could deliver two more rate cuts this year, following April’s 25 bps cut. However, geopolitical uncertainties and global economic outlook( especially U.S) may temper the pace of easing but a heavily favourable monsoon will improve food supply trends and keep the overall inflation in check,” Chakraborti added.
Fuel and power too saw a deflation of 2.18 per cent in April, compared to 0.20 per cent in March.
The RBI mainly takes into account retail inflation while formulating monetary policy. Data released on Tuesday showed, retail inflation eased to 3.16 per cent in April, mainly dueto subdued prices of vegetables, fruits, pulses, and other protein-rich items. This is the lowest level of inflation since July 2019.
Easing of inflation would create enough room for the Reserve Bank to go in for another round of rate cut in the June monetary policy review.
In April, the RBI cut the benchmark policy rate by 0.25 per cent to 6 per cent. This is the second cut during the year to stimulate the economy, facing the threat of US reciprocal tariffs. The RBI sees retail inflation averaging 4 per cent in the current fiscal from the previous estimate of 4.2 per cent.
With PTI inputs