Wholesale Inflation Rises to 3.88% in March on Fuel, Primary Articles Spike

Crude oil, minerals and food-linked pressures drive WPI higher; manufactured products show moderate increase

New Delhi: India’s wholesale price inflation rose to 3.88% in March 2026, driven primarily by an increase in prices of crude petroleum, natural gas, minerals and select food articles, according to data released by Ministry of Commerce and Industry on Wednesday.

The Wholesale Price Index (WPI)-based inflation showed a sharp uptick from 2.13% in February, indicating rising input cost pressures across key sectors of the economy.

On a month-on-month basis, WPI increased 1.64% in March, reflecting a broad-based rise across commodity groups.

Primary Articles Lead Inflation Surge

Inflation in primary articles rose significantly to 6.36% in March, up from 3.27% in February, largely driven by higher prices of crude petroleum, natural gas and minerals.

• Crude petroleum and natural gas prices recorded a sharp increase
• Mineral prices also moved upward
• Food articles showed mixed trends, with some easing in specific categories

Fuel and Power Turn Positive

The fuel and power segment moved into positive territory with 1.05% inflation in March, compared to negative trends in previous months.

• Month-on-month, the segment saw a strong 4.13% increase
• Mineral oils recorded notable gains
• Electricity prices declined, partially offsetting the increase

Manufactured Products Show Moderate Rise

Inflation in manufactured products stood at 3.39% in March, indicating relatively stable but rising price trends in industrial goods.

• 16 out of 22 manufacturing groups reported price increases
• Key contributors included:
  • Food products
  • Chemicals and chemical products
  • Basic metals
  • Textiles

At the same time, some segments such as machinery, fabricated metal products and electronics saw price declines.

Food Inflation Remains Stable

The WPI food index recorded 1.85% inflation, remaining broadly stable compared to February levels.

• Vegetables and pulses showed easing trends
• Milk, eggs, meat and fish recorded increases

Trend Signals Rising Cost Pressures

The data indicates a broadening inflation trend, with cost pressures building across energy, raw materials and manufacturing inputs.

According to the release, WPI inflation has steadily increased over recent months, rising from 1.68% in January to 3.88% in March, signalling a strengthening price cycle.

Outlook

The continued rise in wholesale inflation suggests potential pass-through effects on retail inflation and industrial costs in the coming months, particularly if global commodity prices remain elevated.