India’s wholesale inflation stays negative at -0.32%:Cheaper food and oil ease price pressure; WPI rose by 0.71% in Nov compared to Oct

India’s wholesale inflation stayed in negative territory at -0.32% in November 2025, even though prices rose slightly compared to the previous month. According to data released by the Ministry of Commerce and Industry, the decline means wholesale prices were lower in November 2025 compared to the same month last year. This continues the recent trend of soft price pressures in the economy. The fall in wholesale inflation was mainly due to lower prices of food items, mineral oils, crude petroleum, natural gas, basic metals, and electricity. These declines outweighed price increases seen in some other goods. However, on a month-on-month basis, wholesale prices rose by 0.71% in November compared to October, showing a short-term increase in prices. What’s driving the inflation fall? Wholesale Inflation Components 1. Manufactured products have the highest weightage of 64.23%. 2. Primary articles, with a weightage of 22.62%, have four additional components: 3. Fuel and power have a weightage of 13.15% Impact of Wholesale Price Index (WPI) on ordinary citizens Prolonged high wholesale inflation can disrupt the household budget. It is because producers pass on the additional cost to consumers. Usually, the government controls WPI via taxes. For example, if there’s a sharp increase in crude oil, the government may reduce the excise duty on fuel. However, it can only cut taxes within a limit. In the WPI, more weightage is given to factory-related items like metals, chemicals, plastic, and rubber. How Is Inflation Measured? There are two types of inflation – retail and wholesale. The former is based on the prices paid by common consumers – called the Consumer Price Index (CPI). The Wholesale Price Index (WPI) refers to the prices that one trader charges another in the wholesale market. Additionally, various items are considered to measure inflation. For example, in wholesale inflation, the share of manufactured products is 63.75%, primary articles like food are 22.62%, and fuel and power are 13.15%. In retail inflation, the share of food and products is 45.86%, housing 10.07%, and a share of fuel and other items. ​