WPI inflation falls to (-)1.21% in October on GST cut, favourable base

Wholesale price inflation (WPI) fell to (-) 1 .21% in October, driven by a decline in prices of food articles like pulses and vegetables, as well as lower fuel and manufactured items’ prices, government data showed on Friday (November 14, 2025).

WPI-based inflation was 0.13% in September and 2.75% in October last year.

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

According to WPI data, deflation in food articles was 8.31% in October, compared to 5.22% in September, with onion, potato, vegetables and pulses seeing a decline in prices.

In vegetables, deflation was 34.97% in October, against 24.41% in September. In pulses, deflation was at 16.50% in October, while in potato and onion it was 39.88% and 65.43%t, respectively.

In the case of manufactured products, inflation eased to 1.54%, from 2.33% in September.

Fuel and power witnessed a negative inflation or deflation of 2.55%, against 2.58% in September.

The fall in WPI inflation is on expected lines after the rates of Goods and Services Tax (GST) were slashed effective September 22.

GST rates on daily use mass consumption items were cut as part of the tax rate rationalisation under which the four-tier tax structure was brought down to just 2 slabs of 5 and 18%.

The tax cuts which lowered prices of goods, plus a favourable inflation base of last year, has pulled down both wholesale and retail inflation.

Data released last week showed, retail inflation was at an all-time low of 0.25% in October, driven down by GST rate cuts and a high base of last year. In September retail or consumer price index inflation was 1.44%.

The Reserve Bank of India (RBI), which takes into account retail inflation, had kept benchmark policy rates unchanged at 5.5% last month.

The decline in both retail and WPI inflation would put pressure on the RBI to cut benchmark interest rates in the next monetary policy review meeting scheduled on December 3-5.