WPI Inflation Eases to 2.05% in March, Down from 2.38% in February

Wholesale Price Index (WPI) inflation in India eased to 2.05% in March on a yearly basis, as compared to 2.38% in January, government data revealed on Tuesday.

The wholesale inflation is a proxy for producer prices, was projected at 2.5% by economists, a Reuters report said.

What Has Led To This?

The positive rate of inflation from March, 2025 is primarily because of the rise of prices of manufacturing food products, other manufacturing, food articles, electricity and manufacturing of textiles, etc, the data showed.

Last month, the wholesale food inflation slowed to 4.66% from 5.94% in February.

Additionally, primary articles inflation came down to 0.76% from 2.81% in February.

Fuel and power wholesale prices stood at 0.20% in March as compared to a contraction of 0.71% in February.

Further, the prices of manufactured products, accounting for about 64% of the WPI, increased 3.07% after rising 2.86% in February.

Consequently, reports from the India Meteorological Department indicating upcoming heatwaves have raised concerns about inflationary pressures.

The retail inflation in India slipped to a seven-month low of 3.61% in February, down from 4.31% in January.

How Is Food Inflation Impacted?

The prices of food products in the wholesale markets have eased in recent months as vegetable output has improved over time. Due to this vegetable prices declined 15.88%, compared to a 5.80% drop in the previous month.

While onion inflation eased to 26.65% in march, down from 48.05% in February, potato inflation declined 6.77% from 27.54% during the same period.

Cereal prices in the wholesale markets rose 5.49% in March, against a 6.77% rise a month earlier, the data revealed.

RBI Outlook

Earlier this month, the Reserve Bank of India's (RBI) Monetary Policy Committee (MPC) said that the inflation has declined, due to a favourable outlook on food and is expected to moderate in FY26, offering relief to Indian households.

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