Continued softening of Wholesale Price Index (WPI) inflation since December 2024 is a positive signal for higher economic growth in India. WPI inflation has reduced to 0.39% in May 2025 from 2.57% in December 2024, largely driven by a significant reduction in the prices of primary articles, fuel and power, as well as manufactured product categories, said Mr. Hemant Jain, President, PHDCCI, in a press statement. This downtrend in wholesale inflation will boost business sentiment as it will result in reduced costs of production, he added. The fall in prices of food articles from -0.86% to -1.56%; Petrol from -7.70% to -8.49%, and Manufactured products from 2.62% to 2.04% from April to May 2025, respectively, are significantly contributing to the softening of WPI inflation, said Mr Jain. Going ahead, given the boost in domestic demand, expectation of a normal monsoon, and strong overall economic activity in the country, we expect WPI inflation to remain benign in the coming months assuming geopolitical tensions abate, he said.