Wholesale inflation worsens to 3.88% in March vs 2.13% in previous month

WPI Inflation Rises to 3.88% in March: Wholesale inflation in the country worsened to 3.88 per cent in March from 2.13 per cent in the previous month, according to official data released on Wednesday, April 15. Measured by the Wholesale Price Index (WPI), wholesale inflation -- or headline inflation -- captures the rate at which wholesale prices of select goods increase over a period of time. The monthly WPI inflation reading comes days after separate data showed retail inflation stood at 3.40 per cent last month, down from 3.21 per cent in February.

This provisional data, calculated on a year-on-year basis as of March 2025, shows that the cost of wholesale goods continues to rise across the country. According to the Ministry of Commerce and Industry, the upward movement in the index was broad-based, impacting several key sectors of the economy simultaneously.

"Positive rate of inflation in March, 2026 is primarily due to increase in prices of crude petroleum & natural gas, other manufacturing, non-food articles, manufacture of basic metals and food articles etc," the Ministry stated.

Wholesale Prices Register 1.64% Monthly Increase Driven by Rise in Primary Articles

Wholesale prices edged up as the month-over-month change in WPI stood at 1.64 per cent compared to February 2026. This monthly increase was reflected in the primary articles group, which has a weight of 22.62 per cent in the overall index.

The index for this category rose by 2.28 per cent from 192.9 in February to 197.3 in March. In this group, the cost of crude petroleum and natural gas increased by 36.16 per cent, while the prices of minerals recorded a marginal increase of 0.12 per cent.

"The Price of food articles (-0.85%) and non- food articles (-0.22 %) decreased in March, 2026 as compared to February, 2026," the Ministry noted.

Fuel and Power Segment Sees Sharp Uptick Led by Surge in Mineral Oil Prices

The index for the fuel and power group rose 4.13 per cent to 153.7 in March. This change was primarily due to an 8.77 per cent increase in mineral oil prices. However, a 5.07 percent decline in electricity prices during the same period partially offset the impact of these increased costs.

Manufacturing Sector Records Moderate Growth with Gains Across Majority of Industry Groups

The manufacturing sector, which accounts for 64.23 per cent of the World Population Index (WPI) weight, also witnessed an upward trend. The index for manufactured products rose 0.88 per cent, with prices rising in 16 of the 22 double-digit groups of the NIC. This increase was driven by the manufacture of food products, chemicals, basic metals, and textiles. In contrast, prices of machinery and equipment, beverages, and computer electronics fell in March compared to the previous month.

Food Index Shows Marginal Monthly Dip but Maintains Stability on Annual Basis

Regarding the specific movement of food costs, the Ministry noted that "The Food Index consisting of 'Food Articles' from Primary Articles group and 'Food Product' from Manufactured Products group has marginally decreased from 192.9 in February, 2026 to 192.8 in March, 2026."

Despite a slight decline on a monthly basis, the year-on-year inflation rate of the WPI food index remained stable at 1.85 per cent.

January Inflation Data Finalised While March Figures Remain Provisional Pending Revision

The ministry also released the final data for January 2026, which showed that the inflation rate for all commodities stood at 1.68 per cent that month. The current figures for March are provisional and compiled with a weighted response rate of 77.8 per cent, subject to future revisions as per standard policy.

With ANI Inputs