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Decline in wholesale inflation.

Today, along with the results of Bihar elections, another big news has come for the common people. Let us tell you that in October 2025, a big reduction in prices has been recorded in the wholesale market of India. According to government data, the Wholesale Price Index (WPI) has declined by 1.21%. This is the second consecutive month when prices have gone down at the wholesale level.

These figures are a relief to the general public. From food items to fuel and many industrial products, relief has been seen in almost every category. Generally speaking, things in the market have become cheaper than before and its effect can also be seen on retail prices in the coming months.

Big fall in food prices

The biggest relief in the wholesale market in October was seen in the food category. A sharp decline was seen in items like vegetables, pulses, onion and potatoes, due to which the overall food inflation came down to 8.31%. This decline is more compared to September. The biggest difference came in the prices of vegetables, where deflation of about 35% was recorded. There was a decline of 16.50% in pulses, 39.88% in potatoes, and more than 65% in onions. These are the same goods whose prices were continuously increasing a few months ago, but now they have given relief to the household budget.

Fuel and electricity also became cheaper

Prices of essential categories like fuel, gas and electricity have also come down further in October. Inflation in this category was 2.55% which means petroleum based products have become cheaper than before in the wholesale market. Although it takes some time for its full impact to reach the retail market, this is a news of relief for transport and industries.

The prices of goods manufactured in factories like metals, chemicals, machinery and finished goods have also decreased. Inflation in the manufacturing category declined to 1.54% from 2.33% in September.

GST rate cut also has a big impact

The GST slab on many everyday items was reduced from September 22. Higher tax items were brought into the 5% and 18% slabs. After this step, prices started coming down in the market and its effect is visible at both wholesale and retail levels. This is the reason why retail inflation has also reached a historical minimum of 0.25%.

Pressure increases on RBI to reduce interest rates

After the decline in both wholesale (WPI) and retail (CPI) inflation, the market's hopes now rest on the Reserve Bank. RBI may cut interest rates in the monetary policy meeting to be held on December 35, because when inflation comes down, the scope for giving cheap loans increases. If this happens then people taking home loan, car loan and business loan can also get relief.