New Delhi, April 15: India’s wholesale price-based inflation accelerated to 3.88% in March 2026 on a year-on-year basis, driven largely by rising prices of crude petroleum, natural gas, and select manufactured goods, according to official data released by the Department for Promotion of Industry and Internal Trade today.
The Wholesale Price Index (WPI), with base year 2011–12, showed a notable uptick from 2.13% in February and 1.68% in January, indicating a steady build-up in price pressures across key sectors.
Primary articles lead inflation surge
Inflation in primary articles rose sharply to 6.36% in March, compared to 3.27% in February. The increase was primarily attributed to higher prices of crude petroleum and natural gas, along with minerals.
However, some food components within this category showed mixed trends. Prices of vegetables, pulses, and cereals declined on a monthly basis, while fruits, milk, and protein-based items such as eggs, meat, and fish recorded increases.
Fuel and power turn positive
The fuel and power category recorded a year-on-year inflation rate of 1.05% in March, reversing a prolonged period of contraction seen in previous months. On a month-on-month basis, the segment saw a significant increase of 4.13%, largely due to a rise in mineral oil prices, even as electricity tariffs declined.
Crude petroleum prices showed a particularly sharp annual increase, reflecting volatility in global energy markets.
Manufactured products show steady rise
Inflation in manufactured products rose to 3.39% in March from 2.92% in February, indicating continued cost pressures in the industrial sector.
Out of 22 manufacturing groups, 16 recorded price increases. Key contributors included food products, chemicals, basic metals, textiles, and other manufacturing segments. Meanwhile, sectors such as machinery, beverages, and electronic goods witnessed a decline in prices.
Food inflation remains stable
The WPI Food Index inflation remained unchanged at 1.85% in March. On a monthly basis, the food index saw a marginal decline, reflecting easing prices in some food categories despite increases in others.
Notably, sharp year-on-year declines were recorded in prices of onions and potatoes, while cereals such as wheat also remained under downward pressure. In contrast, fruits and animal-based food items continued to witness moderate inflation.
Monthly momentum strengthens
On a month-on-month basis, wholesale prices rose by 1.64% in March, significantly higher than 0.38% recorded in February. This increase was led by a 2.28% rise in primary articles and a 4.13% jump in fuel and power.
Manufactured products also recorded a modest monthly increase of 0.88%, suggesting broad-based price firming across sectors.
Trend over recent months
Data for the past six months shows a clear upward trajectory in wholesale inflation, moving from negative territory in October 2025 (-1.02%) to 3.88% in March 2026. The trend indicates a gradual recovery in price levels, particularly in primary commodities and energy-related segments.
Data provisional, subject to revision
Officials noted that the March WPI figures are provisional and compiled with a weighted response rate of 77.8%. The final data for January 2026 has been confirmed with a higher response rate of 92.7%.
The government releases WPI data on a monthly basis, typically on the 14th of each month, with a two-week lag. The next set of data for April 2026 is scheduled to be released on May 14.
The WPI remains a key indicator for tracking wholesale price movements in the economy, offering insights into supply-side inflation trends and input cost pressures across sectors.
