Wholesale price inflation rises to 3.88% in March 2026: Govt data

India's annual wholesale price inflation surged to 3.88% in March 2026, driven by rising costs of crude petroleum, natural gas, and manufactured goods. The month-over-month WPI change was 1.64%, indicating intensified price momentum.

The annual rate of inflation based on the All India Wholesale Price Index (WPI) reached 3.88 per cent for the month of March 2026, according to the latest data released by the government. This provisional figure, calculated on a year-on-year basis against March 2025, showed a steady increase in the cost of wholesale goods across the country.

Core Sectors Driving Inflation

According to the Ministry of Commerce & Industry, the upward movement in the index remained broad-based, affecting several core 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.

Monthly Price Momentum

The momentum of wholesale prices intensified as the month-over-month change in the WPI stood at 1.64 per cent compared to February 2026. This monthly rise was reflected in the primary articles group, which carries a weight of 22.62 per cent in the overall index. The index for this category grew by 2.28 per cent, climbing from 192.9 in February to 197.3 in March.

Within this group, the cost of crude petroleum and natural gas surged by 36.16 per cent, while minerals saw 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.

Movement in Fuel and Power Prices

The index for the fuel and power group increased by 4.13 per cent, reaching 153.7 in March. This change was largely driven by mineral oils, which saw prices rise by 8.77 per cent. However, the impact of these higher costs was partially offset by electricity prices, which decreased by 5.07 per cent over the same timeframe.

Manufacturing Sector Trends

Manufacturing, which accounts for 64.23 per cent of the WPI weight, also trended upward. The index for manufactured products rose by 0.88 per cent, with 16 out of 22 NIC two-digit groups recording price increases. Key sectors contributing to this rise included the manufacture of food products, chemicals, basic metals, and textiles. Conversely, prices for machinery and equipment, beverages, and computer electronics moved downward in March compared to the previous month.

WPI Food Index Details

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 have marginally decreased from 192.9 in February, 2026 to 192.8 in March, 2026." Despite the marginal monthly dip, the year-on-year inflation rate for the WPI Food Index remained constant at 1.85 per cent.

Provisional Data and Revisions

The Ministry also released final figures for January 2026, highlighting that the inflation rate for all commodities for that month stood at 1.68 per cent. The current March figures remained provisional and were compiled with a weighted response rate of 77.8 per cent, subject to future revision as per standard policy. (ANI)

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