FX.co ★ India Wholesale Price Inflation at 13-Month Low

India experienced a 0.85% increase in wholesale prices on a year-on-year basis in April 2025, marking a deceleration from the 2.05% rise observed in March and falling short of the projected 1.76% increase. This period signifies the 18th consecutive month of wholesale inflation, though it represents the slowest rate since March 2024. This deceleration can be attributed to food prices, which grew at the mildest rate seen in 18 months, increasing by only 2.55% compared to 4.66% in March. Meanwhile, primary articles witnessed a decline of 1.44%, down from a previous increase of 0.76%. The manufacturing sector also observed moderation, reaching a three-month low at 2.62% compared to 3.07% previously, primarily influenced by reduced increases in paper and paper products, which rose by 2.10% from 2.39%, pharmaceuticals, medicinal chemicals, and botanical products, which increased by 0.98% from 1.26%, as well as a downturn in basic metals that declined by 0.64% versus a previous rise of 0.29%. Furthermore, fuel and power prices saw a decrease of 2.18% compared to a nominal increase of 0.20% earlier, impacted by reductions in LPG prices by 0.41%, petrol by 7.70%, and HSD by 3.04%. On a monthly basis, wholesale prices fell by 0.19%, marking the sixth consecutive month of decline, after a revised 0.26% drop in March.