India's Wholesale Inflation Rises as Food and Fuel Costs Climb

India’s wholesale inflation is estimated to have increased to 0.80% in June 2025 from 0.39% in May, mainly due to higher prices of food, fuel, and other essential goods, according to a report by Union Bank of India.

The report said that the cost of many basic items rose during the month, pushing overall wholesale prices up. A major reason behind this jump was a sharp increase in the prices of goods excluding food and fuel — commonly referred to as core inflation. These prices went up from 0.86% in May to 1.63% in June.

While food prices came down slightly when compared to last year, they still rose compared to the previous month. The report mentioned that food inflation dropped to 0.60% in June from 1.72% in May. On the other hand, fuel prices were still falling but not as sharply as before — with fuel inflation at (-)1.82% in June, compared to (-)3.87% in May.

Union Bank noted that rising global commodity prices played a big role in pushing inflation up. However, the bank also warned that there are risks that could make prices rise further in the coming months.

The report highlighted that global price trends are likely to remain unstable due to tensions between countries and ongoing trade disputes. Even though there is enough supply and demand is weak for now, any major conflict or disruption in trade could make prices go up again.

It also said that the prices of agricultural goods may remain uncertain, depending on how the monsoon progresses. If weather conditions are not favorable or if global issues affect food supplies, wholesale prices in India could see more pressure.

In short, while the rise in inflation for June appears moderate, the road ahead remains uncertain, with several factors — both global and domestic — that could influence price trends.

Also Read: Retail Inflation Falls to 6-Year Low Due to Govt Efforts, Says Finance Ministry