Wholesale inflation eases to 13-month low of 0.85% on falling oil, vegetable prices

Wholesale inflation in India hits 13-month low at 0.85% in April due to falling crude oil and food prices.

Inflation at the wholesale level in India eased to its lowest level in a little more than a year, to 0.85% in April, according to the latest data released by the Ministry of Commerce and Industry. The main drivers of easing of inflation are the falling crude oil prices, as well as softening food inflation.

Wholesale inflation, as measured by the Wholesale Price Index, was last lower than April’s reading in March 2024, which makes the latest data a 13-month low.

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Within this, the primary articles category witnessed a contraction in prices of 1.44% in April, the first such contraction in nearly two years. This contraction in the overall primary articles category was driven by a deep contraction in the crude oil and natural gas sub-category, as well as a smaller contraction in the food category.

Crude oil and natural gas inflation came in at a 22-month low of -15.55% in April, while the food sub-category stood at -0.85%. Digging deeper, the data shows that vegetable prices contracted 18.26% in April 2025, and wholesale potato prices were 24.3% lower than they were in April last year.

The overall food group — which is a combination of the food components of the primary articles and manufactured products categories — saw inflation ease to a 22-month low of 2.55%.

The fuel and power category, which comprises LPG, petrol, and diesel, saw an overall contraction in prices of 2.18%. Within this, LPG prices contracted 0.41%, petrol prices contracted by 7.7% and diesel prices contracted by 5.04% at the wholesale level.