India’s wholesale inflation rises to 3.88% in March on fuel prices

India’s wholesale inflation surged to a 41-month high in March, driven largely by a sharp uptick in fuel prices, according to data released by the Ministry of Commerce and Industry on Wednesday.The Wholesale Price Index (WPI)-based inflation rose to 3.88 per cent in March, up from 2.13 per cent in February 2026, marking the highest level since late 2022. The acceleration reflects mounting price pressures across key segments, particularly energy and manufacturing.Fuel and Energy Drive the SurgeThe primary driver of the increase was the fuel and power category, which recorded a 4.13 per cent increase month-on-month. Within this segment, mineral oil prices jumped 8.77 per cent, underscoring the impact of rising global crude prices and supply-side concerns.In contrast, electricity prices provided some relief, declining by 5.07 per cent during the same period, partially offsetting the broader fuel inflation.
Broad-Based Price Pressures
Inflationary pressures extended beyond energy, with notable increases in:
•Crude petroleum and natural gas
•Manufactured products
•Non-food articles
•Basic metals
•Food articles
Prices of manufactured goods rose 0.88 per cent in March, with 16 out of 22 manufacturing groups witnessing price increases, indicating a broad-based rise in input costs across industries.
Food Inflation Remains Stable
The WPI food index remained relatively steady, with year-on-year inflation holding at 1.85 per cent in March, suggesting limited volatility in wholesale food prices despite pressures in other categories.
Retail Inflation Shows Moderate Uptick
Separately, retail inflation based on the Consumer Price Index (CPI), released by the Ministry of Statistics and Programme Implementation earlier this week, stood at 3.40 per cent, reflecting a modest rise in consumer prices.Rural inflation came in higher at 3.63 per cent, compared to 3.11 per cent in urban areas, highlighting persistent price pressures in the hinterland. The increase was primarily attributed to a mild rise in food prices, along with sharp gains in precious metals such as gold and silver.The latest WPI data signals emerging cost pressures in the production pipeline, especially from energy inputs. Economists note that sustained increases in fuel prices could gradually transmit into retail inflation, posing challenges for price stability in the coming months amid global uncertainties.

(Business Correspondent)