The annual rate of inflation based on the All India Wholesale Price Index (WPI) number edged up to 0.52 per cent for August, primarily due to the increase in prices of food products and manufactured goods, according to figures released by the Ministry of Commerce and Industry on Monday.
“Positive rate of inflation in August 2025 is primarily due to an increase in prices of food products, other manufacturing, non-food articles, other non-metallic mineral products and other transport equipment, etc.,” the government said in a press release.
However, the prices of fuels such as petrol, diesel and natural gas continued to decline during August, with the fuel inflation declining further in the negative zone to -3.17 per cent, the figures showed.
The month-over-month change in WPI for August stood at 0.52 per cent, as compared to July, when the WPI inflation fell to a two-year low of (-) 0.58 per cent this year, compared to the same month of the previous year, primarily due to a decrease in the prices of food articles.
Meanwhile, the country’s inflation rate based on the Consumer Price Index (CPI) edged up to 2.07 per cent in August, although prices of food continued to decline during the month, easing the burden on the common man, according to figures released by the Ministry of Statistics on Friday.
The headline inflation in August was marginally higher than the 1.61 per cent in July this year, which was the lowest level of year-on-year retail inflation since June 2017.
However, the inflation rate is well within the RBI’s target rate of 4 per cent, which allows the central bank to continue with the soft money policy to spur growth.
Food inflation was estimated at minus 0.69 per cent in August, remaining in the negative zone for the third consecutive month, as the prices of vegetables declined by 15.92 per cent and pulses turned cheaper by as much as 14.53 per cent. The prices of spices also fell by 3.24 per cent during the month.
An increase in headline inflation and food inflation during August compared to July is mainly attributed to an increase in inflation of meat and fish, edible oil and fats, eggs and personal care and affects.
The Reserve Bank (RBI) has pegged India’s CPI inflation at 3.1 per cent for 2025-26 as the steady progress of the monsoon and robust kharif sowing are expected to keep food prices in check.
RBI Governor Sanjay Malhotra recently said, “The inflation outlook for 2025-26 has become more benign than expected in June. Large favourable base effects combined with steady progress of the southwest monsoon, healthy kharif sowing, adequate reservoir levels and comfortable buffer stocks of foodgrains have contributed to this moderation.”
