Is India’s WPI Inflation Remaining in Negative Territory as of November?
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Synopsis
India's wholesale price inflation continues to stay negative in November, primarily driven by falling food and energy prices. With a drop to -0.32 percent, this trend eases financial pressure on households and prompts the RBI to adjust growth-focused monetary policies. What does this mean for India's economic future?
Key Takeaways
- WPI inflation for November is at -0.32 percent.
- Food inflation has been negative for six consecutive months.
- The RBI has cut its inflation forecast to 2 percent.
- Repo rate reduced to 5.25 percent.
- Economic growth surged to 8.2 percent.
New Delhi, Dec 15 (NationPress) The inflation rate in India, calculated based on wholesale prices, has continued to remain in the negative territory for November, with a reported decline of (-) 0.32 percent compared to the same month last year, as per data released by the Ministry of Commerce and Industry on Monday.
In October, WPI-based inflation stood at (-) 1.21 percent, while it was 2.16 percent in November of the previous year.
The ministry highlighted that the negative inflation rate in November 2025 is largely attributed to the falling prices of food articles, mineral oils, crude petroleum and natural gas, as well as the manufacture of basic metals and electricity.
On another note, the inflation rate based on the Consumer Price Index (CPI) was recorded at 0.71 percent for November this year, which is a slight increase from 0.25 percent in October, according to the Ministry of Statistics.
Food inflation has remained in the negative zone for November at -3.91 percent, indicating a drop in food prices compared to the same month last year. This marks the sixth consecutive month of negative food inflation, which is relieving for household finances.
The general outlook for inflation appears benign, with the Reserve Bank of India (RBI) revising its inflation forecast for India for the financial year 2025-26 down to 2 percent from a previous estimate of 2.6 percent due to significant drops in food prices and the impact of GST rate cuts.
Recently, RBI Governor Sanjay Malhotra declared a reduction in the repo rate by 25 basis points, bringing it down to 5.25 percent from 5.5 percent, as inflation has decreased, allowing monetary policy to focus on promoting growth.
Malhotra noted that the surge in economic growth to 8.2 percent in the second quarter of the current financial year and the significant drop in inflation to 1.7 percent have created a rare “Goldilocks period” for the Indian economy.
He stated, “The MPC acknowledged that headline inflation has diminished considerably and is expected to be softer than earlier projections, primarily because of the exceptionally favorable food prices. In light of these conditions, the projections for average headline inflation in 2025-26 and Q1:2026-27 have been revised downwards further.”
Malhotra also mentioned that core inflation (which excludes food and fuel) has remained mostly contained during September-October, despite ongoing price pressures from precious metals. Excluding gold, core inflation relaxed to 2.6 percent in October. Overall, the decrease in inflation has become more generalized.
The RBI Governor observed that food supply prospects have improved due to higher kharif production, robust rabi sowing, sufficient reservoir levels, and favorable soil moisture conditions. Except for certain metals, international commodity prices are expected to decrease moving forward.
Point of View
Our stance remains committed to providing accurate and timely updates on the Indian economy. The sustained negative inflation signals potential stability for consumers, and the proactive measures by the RBI showcase a readiness to foster growth.
NationPress
15/12/2025
Frequently Asked Questions
What is the current WPI inflation rate in India?
As of November, the WPI inflation rate in India is at -0.32 percent.
What factors contributed to the negative inflation rate?
The negative inflation rate is primarily due to declines in food articles, mineral oils, and energy prices.
How does the WPI inflation rate compare to the CPI rate?
The CPI inflation rate for November is recorded at 0.71 percent, which is higher than the WPI rate.
What is the RBI's revised inflation forecast for 2025-26?
The RBI has revised its inflation forecast for 2025-26 down to 2 percent from 2.6 percent.
What measures has the RBI taken in response to the inflation rate?
The RBI has reduced the repo rate by 25 basis points to 5.25 percent to encourage economic growth.
