India's WPI inflation drops to its lowest level in 13 months
India's Wholesale Price Index (WPI) inflation fell to a 13-month low of 0.85% in April, down from 2.05% in March and 2.38% in February, according to the Ministry of Commerce and Industry. This decline shows that price pressures are easing across key sectors.
On a monthly basis, the WPI decreased by 0.19% in April, continuing a recent downward trend. The drop was mainly caused by lower food prices and a significant decline in fuel prices.
Retail inflation also dropped, with the Consumer Price Index (CPI) falling to 3.16% in April from 3.34% in March, marking the lowest level since July 2019. The decrease was driven by a slowdown in food inflation, which fell from 2.69% in March to 1.78% in April, providing some relief for households.
This is the third month in a row that retail inflation has remained below the Reserve Bank of India’s (RBI) target of 4%, giving the central bank more flexibility to support economic growth.
The Graph shows the 5 Year trend of the WPI inflation in India
RBI Governor Sanjay Malhotra noted that the inflation outlook has improved, with the Monetary Policy Committee (MPC) lowering its inflation forecast for 2025–26 from 4.2% to 4%. This adjustment reflects a more positive outlook for food prices.
Improved production of Rabi crops, including record wheat output and better pulse yields, is expected to help control food inflation. Additionally, strong Kharif crop arrivals could further ease inflationary pressures.
The latest RBI survey also shows that people expect lower inflation over the next three months and one year, suggesting a more stable future for prices.