June WPI Inflation Overview

India's Wholesale Price Index (WPI) inflation for June 2025 has turned negative, recording a -0.13%. This decline is attributed to deflation in food articles and fuel sectors, with manufactured products also showing reduced costs.

Key Highlights: The WPI inflation was 0.39% in May and 3.43% in June last year. The negative inflation in June is primarily due to decreases in prices of food articles, mineral oils, and basic metals.

Detailed Sector Analysis

Food articles experienced a deflation of 3.75%, with vegetables seeing a significant drop of 22.65%. Manufactured products' inflation slightly decreased to 1.97%, and the fuel and power sector's deflation deepened to 2.65%.

RBI's Monetary Policy Consideration

The Reserve Bank of India focuses on retail inflation for its monetary policy decisions. With retail inflation figures for June pending, the RBI had previously reduced the benchmark policy interest rates to 5.50% last month, reflecting the declining inflation trends.