FX.co ★ India’s Wholesale Inflation Slows More than Forecast

In September 2025, India's wholesale prices experienced a year-on-year increase of 0.13%, falling short of the anticipated 0.5% hike and decelerating from August’s 0.52% rise, which was the quickest since April. This slowdown was largely attributed to a drop in food prices and easing manufacturing costs. Specifically, food prices declined by 1.99% in September, contrasting with a 0.21% increase in August. This reduction was primarily due to substantial price drops in onions (-63.79%), potatoes (-42.24%), vegetables (-24.41%), and pulses (-17.19%). Concurrently, manufacturing inflation decreased to 2.33%, down from August's 2.55%, which had been the fastest rate in four months. In a different trend, fuel prices continued their downward trajectory, decreasing by 2.58% year-on-year, subsequent to a 3.17% drop in August. On a month-to-month basis, wholesale prices fell by 0.19% in September, reversing a 0.53% rise seen in the previous month.