India’s wholesale inflation falls to -0.58% in July, the second straight month in negative territory due to falling food and fuel prices.

Wholesale price inflation (WPI) stayed in negative territory for the second consecutive month at (-) 0.58% in July, as prices of food articles and fuel saw deflation, even though prices of manufactured items increased, government data showed on Thursday (August 14, 2025).

WPI-based inflation was (-) 0.13% in June. It was 2.10% in July last year.

“Negative rate of inflation in July, 2025 is primarily due to decrease in prices of food articles, mineral oils, crude petroleum & natural gas, manufacture of basic metals etc,” the Industry Ministry said in a statement.

As per WPI data, food articles saw a deflation of 6.29% in July, as against a deflation of 3.75% in June, with vegetables witnessing a sharp drop.

Deflation in vegetables was 28.96% in July, compared to 22.65% in June.

In the case of manufactured products, inflation was higher at 2.05% in July, as against 1.97% in the month before.

Fuel and power saw a negative inflation or deflation of 2.43% in July, as against 2.65% in June.

The Reserve Bank of India (RBI), which takes into account retail inflation, had kept benchmark policy rates unchanged at 5.5% earlier this month. The retail inflation in July dropped to an 8-year low of 1.55%.