WPI inflation flips to deflation at -1.21%: What's the reason
India just saw its wholesale price index (WPI) dip by 1.21% in October 2025, flipping from a small inflation last month and way down from last year's 2.75% rise.
This deflation mainly comes from big price drops in food, fuel, and manufactured goods—so the stuff businesses buy to make or sell things is actually getting cheaper.
Vegetables, pulses, and fuel costs drive deflation
Vegetables led the fall with prices crashing nearly 35%, while onions took an even steeper dive at over 65%. Pulses also got cheaper by around 16%.
The Ministry of Industry points to these sectors for driving overall deflation.
Lower fuel and power costs helped too, along with recent GST cuts since September that made everyday items less expensive.
Plus, because prices were much higher last year, this year's numbers look even lower by comparison.