India’s wholesale inflation rose sharply to 3.88% year-on-year (YoY) in March from 2.13% in February. According to data released by the Indian government, the increase was driven by higher fuel and primary article. “The positive rate of inflation in March 2026 is primarily due to an increase in prices of crude petroleum and natural gas, other manufacturing, non-food articles, manufacture of basic metals and food articles etc.,” the government data said on Wednesday .
Fuel, crude and metals push inflation higher
Fuel and power inflation stood at 1.05% in March, reversing a contraction of -3.78% in February and -4.01% in January. The rise was mainly due to an increase in mineral oil prices, although electricity prices declined during the month.
Important to note, earlier this month, the government had increased the price of commercial LPG cylinders by Rs 195.50. The hike comes at a time when global oil prices are climbing due to the ongoing conflict in West Asia.
Primary Articles inflation also surged sharply to 6.36% YoY in March from 3.27% recorded in February and 2.27% recorded in January.
| All Commodities/Major Groups | Feb-26 (P) | Mar-26 (P) |
| All Commodities | 2.13% | 3.88% |
| I. Primary Articles | 3.27% | 6.36% |
| II. Fuel & Power | -3.78% | 1.05% |
| III. Manufactured Products | 2.92% | 3.39% |
| Food Index | 1.85% | 1.85% |
Food inflation remains stable
The WPI food index remained stable at 1.85% in March on a year-on-year basis. However, trends within the category remained mixed.
Prices of vegetables, pulses, onions, and potatoes declined, while prices of fruits, milk, and protein-rich items like eggs, meat, and fish moved higher.
Manufacturing inflation continues to rise
Inflation in manufactured products increased to 3.39% in March from 2.92% in February. Prices rose across a majority of sectors, with 16 out of 22 manufacturing groups reporting increases.
Key sectors that saw price gains include food products, chemicals, textiles, and basic metals. This suggests that input cost pressures are building up for producers.
Monthly prices see sharp jump
On a month-on-month basis, wholesale prices rose 1.64% in March compared to February. This marks a strong increase, indicating rising cost pressures across sectors.
Primary articles saw a sharp rise, led by a surge in crude petroleum and natural gas prices.