Wholesale Price Inflation Hits 3.88% Amid Global Crisis: What You Need to Know

Inflation Trends in March 2026

New Delhi: In March, wholesale price inflation increased for the fifth consecutive month, reaching 3.88%. This rise is attributed to significant increases in fuel, power, and manufactured goods, influenced by the ongoing crisis in West Asia, as reported by government data on Wednesday.

The Wholesale Price Index (WPI) inflation was recorded at 2.13% in the previous month and 2.25% in March of the previous year.

The industry ministry noted, "The positive inflation rate in March 2026 is mainly due to rising prices in crude petroleum and natural gas, various manufacturing sectors, non-food items, basic metals, and food products."

WPI data indicated that inflation in the fuel and power sector surged to 1.05% in March, a significant increase from a deflation of 3.78% in February.

Crude petroleum prices soared to 51.57% in March, compared to a deflation of 1.29% in the prior month.

Inflation for manufactured goods also rose to 3.39% in March, up from 2.92% in February.

Conversely, the increase in food article prices moderated to 1.90%, down from 2.19% in February.

In the vegetable category, inflation decreased to 1.45% in March, compared to 4.73% in February.

The crisis in West Asia, particularly following the US-Israel attack on Iran, has led to a dramatic increase in global crude oil prices, which have surged over 50% since the crisis began on February 28.

In response to the escalating crude oil prices, the government announced a reduction in excise duty by Rs 10 per litre on petrol and diesel on March 26, aiming to prevent fuel retailers from passing on the increased costs to consumers.

This decision was prompted by the rapid rise in international crude oil prices, which jumped from around USD 70 per barrel to approximately USD 122 per barrel within a month, marking a nearly 75% increase due to the ongoing conflict in West Asia and disruptions in global energy supply chains.

Additionally, consumer price index-based retail inflation rose to 3.4% in March, compared to 3.21% in the previous month, largely driven by increases in certain food items, as per earlier data releases.

The Reserve Bank of India (RBI) maintained its interest rates during its first bi-monthly monetary policy meeting earlier this month, primarily focusing on retail inflation to guide its benchmark lending rates.