India’s Wholesale Inflation Hits Lowest Level Since July 2023 — Retail Inflation at 8-Year Low

Mumbai(The Uttam Hindu): Bringing relief on the inflation front, India’s wholesale inflation dropped to -0.58% in July 2025, the lowest since July 2023. In June 2025, the figure stood at -0.13%.

According to the Ministry of Commerce and Industry, the fall in wholesale prices was driven by a decline in costs of food products, mineral oils, crude petroleum, natural gas, and basic metal manufacturing. Data shows that inflation in primary articles fell sharply to -4.95% in July from -3.38% in June. The fuel and power category also saw a slight drop to -2.43% in July from -2.65% in June. Meanwhile, the food index inflation eased to -2.15% compared to -0.26% earlier.

In contrast, manufactured products recorded a marginal rise in inflation, increasing to 2.05% in July from 1.97% in June.

Earlier this week, the government reported that retail inflation dropped to 1.55% in July 2025, marking the lowest level in eight years since June 2017. The key factor behind this decline was the reduction in food prices.

RBI Governor Sanjay Malhotra attributed this easing trend to steady monsoon progress, healthy Kharif sowing, adequate reservoir levels, strong food grain buffer stocks, and a favorable base effect. However, he cautioned that due to adverse base effects and demand-related factors from policy actions, retail inflation could stay above 4% in Q4 of FY2025-26 and beyond.