India’s wholesale prices rose 3.88% year-on-year in March 2026, up from 2.13% in February and above market expectations of a 3% increase. This was the fastest pace of wholesale inflation since January 2023, driven by a sharper rise in manufacturing costs and a rebound in fuel prices, while food inflation remained unchanged.
Fuel and power prices turned positive, rising 1.05% after a 3.78% decline in February, supported by a recovery in petrol prices (2.50% vs. -5.38%) and high-speed diesel (HSD) (3.26% vs. -3.27%). Manufacturing inflation also picked up to 3.39% from 2.92%, led by higher prices in textiles (4.91% vs. 3.29%), leather and related products (3.03% vs. 1.58%), and chemicals and chemical products (2.19% vs. 0.55%).
Primary articles recorded faster price growth at 6.36%, compared with 3.27% in February, mainly reflecting a steeper increase in non-food articles (11.50% vs. 8.80%), while the food index stayed steady at 1.85%. On a month-on-month basis, wholesale prices climbed 1.64%, quickening from an upwardly revised 0.38% increase in February.
