India experienced a significant drop in wholesale price index (WPI) inflation for September, settling at a remarkably low 0.13%. This positive development, announced by the government on Tuesday, October 14, 2025, is primarily due to a notable softening in the prices of essential food items, fuel, and various manufactured goods.
For context, WPI-based inflation stood at 0.52% in August and was significantly higher at 1.91% in September of the previous year, highlighting the current period of easing prices.
The Ministry of Industry stated that this “positive rate of inflation” in September 2025 can be attributed to price increases in specific sectors, including food product manufacturing, other manufacturing segments, non-food articles, certain transport equipment, and textiles.
Delving into the WPI data, food articles saw a deflation of 5.22% in September, a further decrease from August’s 3.06%. This downward trend was particularly pronounced in vegetable prices, which experienced a substantial deflation of 24.41% in September, compared to 14.18% in the preceding month.
Similarly, the manufactured products sector also contributed to the overall easing, with inflation dropping to 2.33% from 2.55% in August. The fuel and power segment reported a negative inflation (deflation) of 2.58% in September, an improvement from the 3.17% deflation seen in August.
It’s worth noting that the Reserve Bank of India (RBI), which primarily focuses on retail inflation when determining monetary policy, maintained its benchmark policy rates unchanged at 5.5% earlier this month. This decision came shortly before official data on Monday, October 13, 2025, revealed that retail inflation had fallen to an eight-year low of 1.5% in September.