Wholesale Inflation In India Up To 3.88%, Highest In Over Three Years

The country's wholesale price index (WPI) jumped to 3.88% in March 2026, recording its highest level in more than three years due to rises in prices of fuels, power, metals, and manufactured goods, as per information from the Ministry of Commerce and Industry.

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The rate was at 2.13% in February 2026 and 2.05% in March 2025.The latest reading breaks a six-month phase of low or negative inflation, during which WPI either contracted or remained below 1% through December 2025.

Primary Articles And Manufactured Goods Rise

Inflation in primary articles rose to 6.36% in March 2026 from 0.76% a year earlier, according to official data. This section, having a weightage of 22.62% in the index, consists of food products like cereals, vegetables, dairy products, eggs, meat, and fish; besides minerals and crude oil. This group experienced an inflation rate of 0.21% during December 2025 that rose to 2.21% in January 2026 and to 3.27% in February.

The manufactured products, constituting the biggest chunk of the WPI at 64.23% weightage, have shown an inflation rate of 3.39% in March as against 2.92% in February and 3.07% in March 2025. The rise reflects higher prices of basic metals, food products and non-food manufactured items, as per the Ministry of Commerce and Industry.

Fuel And Power Segment Turns Positive

The fuel and power category, which includes petrol, diesel and cooking gas, recorded inflation of 1.05% in March, reversing from a contraction of 3.78% in February. This is an indication of a change from the previous period when the segment had been under deflation, buoyed by lower global energy prices.

Based on ICRA, the crude petroleum, natural gas, and fuel and power segments made substantial contributions to the rise in inflation for March due to higher global energy prices due to geopolitical activities in West Asia.

Retail Inflation Also Edges Higher

The retail inflation, measured through the Consumer Price Index (CPI), increased to 3.4% in March 2026 from 3.2% in February, according to data published by the Ministry of Statistics and Programme Implementation.

On the other hand, the RBI, which utilizes CPI to measure inflation, retained its repo rate at 5.25% during its latest policy statement. The central bank estimated that the CPI inflation will be 4.6% for 2027, and noted the threat of geopolitical conflicts, fluctuations in energy prices, and weather disturbances on its performance.

On the other hand, the Government is also examining the Wholesale Price Index (WPI) framework, which includes revising the base year to 2022-23 from 2011-12 and transitioning it to the Producer Price Index (PPI) format.

The rise in wholesale inflation in March can be attributed to the cost increase faced by key industries, whereas changes in the prices of energy commodities still impact the overall price movements.