In July 2025, Indian factory gate inflation (using the Wholesale Price Index as the measure of price change) dropped to two-year lows of -0.58 percent. This was the second month of negative inflation; mostly because of the falling costs of food and gasoline. Looking at this trend, there was a general decline although the prices of manufactured goods rose during the same period.
Index of Wholesale Prices
The WPI is the principal inflation estimation in India. It tracks the fluctuations of the prices of the wholesale basket of items. The index can be divided into three groups namely: manufactured products (64.2%), fuel and power (13.2%), and primary articles (22.6%). Both manufactured goods and primary articles constitute 24.4 percent of the total weight as a bunch of food products. Such sub categories are Basic Metals, Food Products, Chemicals and Textiles.
Food Price Falling
The third month of deflation had a decrease in the primary food items of 6.29 percent in July. Vegetables dropped in price by a quarter (28.9%), potatoes by nearly half (41.3%), and onions by a half (44.4). Also, perishable items like fruits and pulses were driven down by 2.65 percent and 15.12 percent respectively. Foods containing high protein like meat, fish, and eggs reduced by 1.09 % in quantity. Food goods prices varied with oil seeds increasing by 9.77 and wheat by 4.4%.
Food Prices are fallen.
The third month of deflation was in July whereby the primary food items decreased by 6.29 percent. Vegetable prices dropped by 28.9 percent, potato prices dropped by 41.3 percent and onion by 44.4 percent. Further, there was a reduction of 2.65 and 15.12 percent in price of fruits and pulses respectively. Meat, fish, eggs, and other high protein foods reduced by 1.09 percent. Food goods had varied patterns in the price with oil seeds increasing by 9.77 percent and wheat increasing at 4.4 percent.
Fuel and Power Price changes
There was 2.43 reduction in the price of fuel and electricity in July. It was the weakness in global commodity prices especially mineral oils that saw the high-speed diesel decline by 4.3 percent and gasoline decline by 5.7 percent. In case of these fuels, it was the fourteenth and twenty-seventh consecutive month of decline. On the other hand, the cooking gas prices increased by 1.23%, which meant that pricing is varied in the fuel category.
The Trends of price of Manufactured goods
Various manufactured goods increased by 2.05% in July. We saw Non-metallic mineral items shoot up by 2.7 percent, leather by 2.57 and apparel by 2.5 percent. Prices of plaster and cement rose by 3.4%. As animal fats and oils manufactured went down to 22.04%. The fact that the increase in price of other commodities, including food products, paper, chemicals and medicines, is rising at a lower rate implies that there are combined effects of inflationary pressures in this market.
Fruits and Ramifications of Economical Life
Food prices were the most important factor that led to the July deflation despite an increase in prices of other goods. Experts insist that WPI inflation marked its lowest in July and is expected to improve in August next year 2025. There are various factors that cause the price of perishable food to increase including the devalued currency, inflation in the price of food and crude oil and the weather effects on the price of food like severe rainfall during the season.
As regards retail inflation