India’s wholesale inflation, measured by the All India Wholesale Price Index (WPI), rose sharply to 3.88 per cent in March, according to data released by the Ministry of Commerce and Industry on Wednesday.
The latest figure marks a significant increase from February’s 2.13 per cent, indicating a strong pickup in price pressures across sectors.
Energy Prices Lead Inflation Spike
The government attributed the rise in wholesale inflation primarily to an increase in prices of crude petroleum and natural gas, along with costlier manufactured goods and non-food articles.
“Positive rate of inflation in March 2026 is primarily due to an increase in prices of crude petroleum & natural gas, other manufacturing, non-food articles, manufacture of basic metals and food articles,” the ministry said.
Primary Articles See Strong Growth
Primary articles, which carry a weight of 22.62 per cent in the index, recorded inflation of 6.36 per cent, with a sharp month-on-month rise of 2.28 per cent.
The increase was largely driven by a surge in crude petroleum and natural gas prices, reflecting global energy market volatility.
Fuel & Power Inflation Turns Positive
The fuel and power segment (13.15 per cent weight) posted inflation of 1.05 per cent, reversing the negative trend seen in previous months.
The shift highlights rising energy costs, influenced by ongoing geopolitical tensions affecting global supply chains.
Manufacturing Sector Faces Cost Pressure
Manufactured products, which make up the largest share of the WPI basket at 64.23 per cent, recorded inflation of 3.39 per cent.
Notably, 16 out of 22 manufacturing groups reported price increases, pointing to widespread cost pressures in industrial goods.
Experts Flag Broad-Based Price Momentum
Commenting on the data, Rajeev Juneja, President of the PHD Chamber of Commerce and Industry, said the rise reflects a broad-based strengthening of inflation.
“The sharp increase in WPI inflation in March 2026 over March 2025 reflects a more broad-based strengthening in price momentum driven by a jump in energy-related components and manufactured products,” he noted.
Sharp Month-on-Month Increase Signals Acceleration
On a sequential basis, the WPI index recorded a month-on-month increase of 1.64 per cent in March, compared to 0.38 per cent in February, indicating a sharp acceleration in inflation during the month.
Food Prices Show Marginal Easing
Despite the overall rise, the Food Index saw a slight decline, moving from 192.9 in February to 192.8 in March.
The index includes food articles under primary goods and food products under manufactured items, suggesting relative stability in food prices compared to other sectors.
Outlook: Inflation Pressures Persist
The latest data signals continued inflationary pressure in the economy, particularly from energy and manufacturing sectors, even as food prices remain relatively stable.
Economists are likely to closely monitor global commodity trends and domestic demand conditions in the coming months.
What is India’s WPI inflation for March 2026?
It stood at 3.88%, up from 2.13% in February.
What caused the rise in inflation?
Mainly higher prices of crude oil, natural gas, and manufactured goods.
How did fuel prices impact inflation?
Fuel and power inflation turned positive due to rising energy costs.
What is happening with food prices?
Food prices saw a marginal decline during the month.
Is inflation rising overall?
Yes, data shows a broad-based increase across multiple sectors.
