Continued softening of Wholesale Price Index (WPI) inflation since December 2024 is a positive signal for higher economic growth in India. WPI inflation has reduced to 0.39% in May 2025 from 2.57% in December 2024, largely driven by a significant reduction in the prices of primary articles, fuel and power, as well as manufactured product categories, said Mr. Hemant Jain, President, PHDCCI, in a press statement issued here today.

This downtrend in wholesale inflation will boost business sentiment as it will result in reduced costs of production, he added.

The fall in prices of food articles from -0.86% to -1.56%; Petrol from -7.70% to -8.49%, and Manufactured products from 2.62% to 2.04% from April to May 2025, respectively, are significantly contributing to the softening of WPI inflation, said Mr Jain.

Going ahead, given the boost in domestic demand, expectation of a normal monsoon, and strong overall economic activity in the country, we expect WPI inflation to remain benign in the coming months assuming geopolitical tensions abate, he said.