WPI deflation narrowed to -0.32% in November, driven by base effects, a weakening rupee, and firmer commodity prices, even as food inflation rose from the previous month.
Economists expect WPI to turn positive in December, with the INR hitting a record low of ₹90.72/$ and foreign outflows adding pressure to imported inflation.
Wholesale Price Index (WPI)-linked inflation rose to -0.32% in November, compared to -1.21% in October, according to data from the Ministry of Commerce and Industry released on Monday. The negative inflation print in November is attributed to a decrease in prices of food items, mineral oils, crude petroleum and natural gas, basic metals, and electricity.
“The WPI deflation narrowed faster than expected to 0.3% in November 2025 from 1.2% in October 2025, reflecting the base effect, weakening INR, and rising prices of some commodities,” Aditi Nayar, chief economist at ICRA Ltd., said.
1 December 2025
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Although the overall trend remains deflationary, the WPI food index, which tracks the prices of food items and food products, was higher than in October, signalling a rise in food prices. Food inflation rose to -2.60% in November as against -5.04% in October.
As per the data, fuel and minerals also rose in November, with fuel prices increasing by 1.03%. Electricity prices jumped sharply, rising 0.70%. Prices of mineral oils fell slightly, while coal prices remained steady.
Articles such as food products, chemicals, electronics, and mineral-based products became cheaper, while prices of textiles, machinery, electrical equipment, and clothing increased slightly.
Retail inflation, measured by the Consumer Price Index (CPI), rose to 0.71% in November, compared to 0.25% in October. The rise in headline inflation last month was due to higher prices of vegetables, eggs, meat and fish, fuel and light, and spices.
“With the further depreciation in the INR, hardening commodity prices, and the unseasonal rise in vegetable prices, and despite softening crude oil, we expect the WPI to move into a YoY inflation of around 0.5% in December 2025,” Nayar said.
The Indian rupee fell to an all-time low of ₹90.72 per dollar on Monday due to persistent foreign fund outflows and the absence of an India–US trade deal.
