India’s wholesale price inflation accelerated sharply in April, rising to its highest level in more than three-and-a-half years, government data showed on Thursday.
The increase was largely driven by a sharp rise in energy prices linked to the ongoing Middle East conflict.
India’s wholesale price index (WPI)-based inflation rose 8.3% year-on-year in April, compared with 3.88% in March.
The latest reading marked the fastest pace of wholesale inflation since October 2022, when inflation stood at 8.67%.
Fuel and power prices record sharp increase
Data showed that fuel and power prices surged 24.71% year-on-year in April, sharply higher than the 1.05% increase recorded in March.
The spike in energy-related prices was one of the biggest contributors to the sharp rise in wholesale inflation during the month.
The fuel and power index had already shown strong month-on-month momentum in March.
The index for the category increased 4.13% from 147.6 in February to 153.7 in March.
Within the category, mineral oil prices increased 8.77% month-on-month in March, while electricity prices declined 5.07% during the same period.
The government said the positive rate of inflation in March was primarily due to higher prices of crude petroleum and natural gas, other manufacturing, non-food articles, the manufacture of basic metals, and food articles.
Food inflation remains elevated
Wholesale food prices also increased in April, though at a slower pace compared with fuel prices.
Food prices rose 2.31% year-on-year in April after increasing 1.85% in March.
Vegetable prices increased 0.53% year-on-year in April, compared with a 1.45% rise in the previous month.
The WPI Food Index, which combines food articles from the primary articles group and food products from manufactured products, remained largely stable during March.
The Food Index marginally declined from 192.9 in February to 192.8 in March.
However, the year-on-year inflation rate based on the WPI Food Index remained unchanged at 1.85% in March.
Manufactured products inflation rises
Prices of manufactured products rose 4.62% year-on-year in April, compared with a 3.39% increase in March.
The manufactured products index increased 0.88% month-on-month in March, rising from 148.2 in February to 149.5.
Out of the 22 NIC two-digit groups under manufactured products, 16 groups recorded price increases, while six groups witnessed declines.
According to the government, some of the major categories that saw month-on-month price increases included the manufacture of food products, chemicals and chemical products, basic metals, textiles, and other manufacturing segments.
Meanwhile, categories such as machinery and equipment, beverages, fabricated metal products, computer and electronic products, and wearing apparel registered declines in prices during March compared with February.
Month-on-month inflation accelerates
The month-over-month change in WPI stood at 1.64% in March, compared with 0.38% in February.
Among major groups, primary articles increased 2.28% month-on-month in March, supported by higher prices of crude petroleum and natural gas.
The government said the WPI for March 2026 was compiled at a weighted response rate of 77.8%, while the final figure for January 2026 was based on a weighted response rate of 92.7%.
The final WPI inflation reading for January stood at 1.68%, with the overall index at 157.6.
The government added that provisional WPI figures would undergo revisions in line with the revision policy for wholesale price data.
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