New Delhi, 16 June (IANS). Economists stated on Monday that the wholesale price index (WPI) from December 2024 is a positive signal for high economic development in India. He said that he hoped that WPI inflation will remain soft in the coming months, provided the geopolitical tension is reduced.
According to data from the Ministry of Commerce and Industry, the annual rate of WPI -based inflation came to a 14 -month low of 0.39 percent in May this year, which was 0.85 percent in April and 2.05 percent in March.
PHDCCI President Hemant Jain said that the decrease in inflation has been observed mainly due to primary goods, fuel and power as well as manufacturing product category prices.
“This decline in wholesale inflation will promote business sentiment as it will reduce the cost of production,” he said.
During April to May, food items prices have contributed significantly to -0.86 percent to -1.56 percent, petrol prices from 7.70 percent to -8.49 percent and manufactured product prices by 2.62 percent to 2.04 percent in the price of bulk price index inflation.
ICRA senior economist Rahul Aggarwal said that with the help of a favorable basis, the wholesale price index inflation reached a 14 -month -low of 0.4 percent in May 2025 in April 2025, from 0.9 percent of April 2025, which is slightly lower than 0.7 percent of this month of ICRA.
He said, “This decline was widespread, with food, non-food manufacturing, minerals and fuel and power segments contributed to the fall in headline print between these months. WPI Food Inflation Print fell to 1.7 percent in May 2025, which is the lowest in 19 months amid slow rise in prices.”
Out of the 22 food items issued by the Department of Consumer Affairs, 20 recorded a decrease in its annual inflation rate till 15 June.
“Looking at these trends, the ICRA hopes that WPI -inflation inflation will be reduced further in June 2025 in May 2025,” he said.
-IANS
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