Wholesale Inflation Stays in Negative Zone at -0.32% in November

India’s wholesale inflation continued to remain soft in November 2025, with the All-India Wholesale Price Index (WPI) recording a contraction of 0.32 per cent compared to the same month last year, according to data released by the Ministry of Commerce & Industry. The figures mark a continuation of the trend seen over recent months, reflecting easing price pressures across several key commodities.

A negative WPI indicates that, on average, wholesale prices of goods in the economy are falling year-on-year . While this can benefit consumers by keeping retail prices in check, persistent negative inflation may signal weak demand, excess supply, or price corrections in certain sectors. In November, the contraction was largely driven by falling prices of food articles, mineral oils, crude petroleum, natural gas, basic metals, and electricity , which offset increases in some manufactured and primary products.

Despite the year-on-year decline, the WPI saw a month-on-month rise of 0.71 per cent in November compared to October, suggesting that wholesale prices are beginning to gain momentum. The overall index stood at 155.9 in November, compared to 154.8 in October (annual inflation -1.21%) and 155.0 in September (marginal positive inflation of 0.19%).

Breaking down the major commodity groups, Primary Articles recorded an index of 192.1 with inflation at 2.93 per cent, reflecting firm prices in this segment. The Fuel and Power group fell to 146.5, contracting by 2.27 per cent, largely due to lower prices of mineral oils and electricity. Manufactured Products , which form the largest portion of the WPI basket, stood at 145.0 with inflation at 1.33 per cent, indicating moderate price pressures.

The WPI Food Index , which combines food articles from both primary and manufactured groups, rose to 195.0 in November. Yet, on a year-on-year basis, it contracted by 2.60 per cent, highlighting the effect of declining food prices over the past year.

The WPI is a key economic indicator that helps policymakers monitor inflationary trends and plan interventions. While the WPI itself is not directly controlled, the Ministry of Commerce & Industry , along with the Reserve Bank of India (RBI) , monitors wholesale price movements to guide monetary and fiscal measures. Budgetary targets generally aim to maintain moderate inflation , ensuring prices are stable without stifling growth. Persistent negative inflation, if extended, may prompt policy adjustments, including measures to boost demand or manage supply constraints.

The WPI figures are compiled using the base year 2011-12 and are provisional , subject to revision as per government index revision policies. Analysts will watch the upcoming months closely to see if the month-on-month price uptick signals a reversal of the negative inflation trend.