India’s wholesale inflation rises to 3.88% in March on fuel, primary goods costs

India’s annual wholesale price inflation accelerated to 3.88% in March from 2.13% in February, driven largely by higher prices of fuel, crude petroleum and manufactured goods, government data showed on Wednesday.

The Wholesale Price Index (WPI)-based inflation stood at 1.68% in January, indicating a steady uptick in price pressures over recent months.

Prices of primary articles rose 6.36% year-on-year in March, compared with 3.27% in February, led by a sharp increase in crude petroleum and natural gas prices in the wake of West Asia conflict.

Fuel and power inflation turned positive at 1.05% in March after remaining in contraction for the previous two months.

Manufactured product inflation, which carries the largest weight in the index, edged up to 3.39% from 2.92% a month earlier, with increases seen in food products, chemicals, basic metals and textiles.

On a month-on-month basis, wholesale prices rose 1.64% in March, the fastest pace in six months, compared with a 0.38% rise in February, indicating a sequential pickup in price momentum.

The fuel and power segment recorded a sharp 4.13% monthly increase, while primary articles rose 2.28%. Manufactured products saw a more moderate 0.88% rise.

Food price pressures at the wholesale level remained muted, with the WPI food index inflation unchanged at 1.85% year-on-year. On a monthly basis, the food index was largely flat, edging down slightly from February levels.

The wholesale inflation data for April will be released on May 14.