Onions, once a reason for tears in kitchens and wallets, are now bringing relief. The bite of soaring costs is finally easing. With food, fuel and vegetable costs coming down, India’s wholesale inflation has cooled off to its lowest in over a year. In April 2025, it fell to only 0.85%, compared to 2.05% in March and 1.19% in the same month last year.

Inflation at a 13-Month Low

Fresh numbers released by the Ministry of Commerce on Wednesday show that April’s wholesale inflation is at its lowest level since March 2024, when it stood at 0.26%. Experts say this drop is mostly due to falling prices in food, machinery, chemicals, and transport equipment. All these sectors have shown signs of easing, which helped pull overall inflation down.

Vegetables See a Shift, Onion Prices Lead the Way

Food prices have fallen by 0.86% in April. By contrast, they had increased by 1.57% in March. Vegetables saw inflation at 18.26% in April, slightly up from 15.88% in March, but onions told a different story. Onions saw the biggest dip. Their inflation rate dropped sharply to just 0.20% in April, a steep fall from the 26.65% recorded in March. That’s a massive turnaround in just one month, showing that supply chains may be improving.

Hopes Rise with the Monsoon Forecast

Rahul Agarwal, a senior economist at ICRA, shared that early signs of the monsoon hitting Kerala and expectations of a good rainy season across the country bring hope. Better rainfall usually means healthier crops. That could mean food prices will stay under control in the coming months. This gives people some breathing room and reduces pressure on household budgets.

Retail Inflation Also Cooling Down

The effect is not just limited to wholesale prices. Retail inflation which matters more for the common consumer and is closely tracked by the Reserve Bank of India (RBI), has also seen a major dip. In April, it dropped to 3.16% — a level not seen in six years. With prices of vegetables, fruits and pulses coming down, the RBI may even consider cutting interest rates during its upcoming review in June.

So, while onions still bring tears to the eyes, they’re no longer burning a hole in people’s pockets — at least for now.