India’s Wholesale Inflation Eases to 2.05% in March on Softer Food and Fuel Prices

India’s wholesale inflation, as measured by the Wholesale Price Index (WPI), eased to 2.05% in March, down from 2.38% in February 2025, according to the latest data released by the Ministry of Commerce and Industry. The dip was largely attributed to declining food and fuel prices, despite a steady rise in manufactured product costs.

The primary articles group, which includes food items and crude oil, witnessed a month-on-month price decline of 1.07%. Within this group, crude petroleum and natural gas dropped 2.42%, non-food articles were down 2.40%, and food articles slipped 0.72%. The only segment to buck the trend was minerals, which edged up 0.31%.

The WPI Food Index, which combines food articles and processed foods, also declined from 189.0 in February to 188.8 in March. As a result, food inflation based on WPI fell to 4.66%, down from 5.94% in February.

In the fuel and power segment, inflation came in at 0.20% in March, up from -0.71% in February. However, the index still showed a 0.91% contraction. Electricity prices fell 2.31%, and mineral oil prices dipped 0.70%, while coal prices remained steady.

On the other hand, manufactured products, which make up the largest share of the WPI basket, saw prices rise by 0.42% month-on-month. Consequently, manufacturing inflation inched up to 3.07% in March, from 2.86% in February. Sectors like basic metals, food products, transport equipment, and machinery contributed to the increase. However, price declines were recorded in textiles, chemicals, electronics, printing, and furniture.

Meanwhile, a separate release from the National Statistics Office (NSO) showed a slowdown in India’s industrial activity. The Index of Industrial Production (IIP) grew by 2.9% in February, down from 5.01% in January—the slowest pace in six months. Within this, manufacturing grew by 2.9%, mining by 1.6%, and electricity output by 3.6%, indicating sluggish momentum despite easing wholesale inflation.