India’s wholesale prices unexpectedly fell by 0.13% yoy in June 2025, missing forecasts of a 0.52% increase and reversing from 0.39% growth in May, marking the first annual decline in wholesale prices since October 2023. The decline was primarily driven by a drop in food prices, which fell for the first time since June 2023 (-0.26% vs 1.72% in May), weighed down by sharp decreases in onions (-33.49%), potatoes (-32.67%), and vegetables (-22.65%). Fuel prices also fell significantly, down 2.65%, the largest drop in five months (vs -2.27% in May), adding further pressure to wholesale prices. In addition, manufacturing inflation eased to 1.97%, down from 2.04% in May, its lowest level since October 2024, reflecting softer cost increases across most subcomponents. Notable slowdowns were seen in paper and paper products (1.52% vs 1.67%), food products (6.99% vs 8.45%), and rubber and plastic products (0.47% vs 0.94%). Monthly, wholesale prices dropped by 0.19%, after a 0.06% fall in May.