The wholesale inflation in India has come down to 2.05% in March 2025, marking the lowest level in the last four months. In comparison, inflation was recorded at 1.89% in November 2024 and 2.38% in February 2025. Reduction in wholesale inflation has been attributed to a large extent for decrease in prices of daily essential commodities. These updated inflation figures were released by the Ministry of Commerce and Industry on 15 April 2025.
Manufactured products account for 63.75% of the wholesale inflation, primary articles such as food account for 22.62% and fuel and power account for 13.15%. That is, the rise and fall in the inflation of manufactured products has the greatest impact on the inflation rate.
Why Has Wholesale Inflation Decreased?
- Inflation in daily use items decreased from 2.81% to 0.76%.
- Inflation in food items decreased from 5.94% to 4.66%.
- Wholesale inflation in fuel and power increased from -0.71% to 0.20%.
- Wholesale inflation in manufacturing products increased from 2.86% to 3.07%.
Impact of Wholesale Inflation on the Common Man
Wholesale inflation mainly affects producers, but its effect eventually reaches consumers. When the wholesale value remains high, manufacturers often pass additional costs to retailers, which then increase prices for customers. Products such as metals, plastic and chemicals are used in manufacturing – become more expensive, making everyday items expensive. The government may reduce some taxes such as excise duty on fuel to provide temporary relief, but this solution is limited.
In short, increasing wholesale inflation can lead to high prices for essential commodities over time, affecting the common man’s budget.
- vegetables
- Non food articles include oil seeds
- Minerals
- Crude petroleum
How is Inflation Measured in India?
There are two types of inflation in India. One is retail and the other is wholesale inflation. Retail inflation rate is based on the prices paid by common customers. It is also called Consumer Price Index (CPI). At the same time, Wholesale Price Index (WPI) means the prices that one trader charges from another trader in the wholesale market.
Different items are included to measure inflation. For example, in wholesale inflation, manufactured products have a share of 63.75%, primary articles like food have 22.62% and fuel and power have 13.15%. Whereas, in retail inflation, food and products have a share of 45.86%, housing has 10.07% and other items including fuel also have a share.
