Prices of crude petroleum and natural gas registered a sharp increase during the period.

India Wholesale Inflation Rises to 3.88% in March as Fuel Prices Surge Amid West Asia Crisis

Wholesale inflation in India rose for the fifth consecutive month to 3.88 percent in March, driven by higher fuel, electricity and manufacturing costs amid the ongoing West Asia crisis, according to government data released on Wednesday.

The increase comes as global crude oil prices have surged sharply in recent weeks due to geopolitical tensions, raising input costs across sectors. In response, the government had cut excise duty on petrol and diesel by Rs 10 per litre in late March to ease pressure on consumers.

Within the wholesale price index data, fuel and power inflation saw a significant rebound, rising to 1.05 percent in March compared to a contraction of 3.78 percent in February. Prices of crude petroleum and natural gas registered a sharp increase during the period.

Manufactured goods also recorded higher inflation at 3.39 percent, up from 2.92 percent in the previous month, reflecting increased costs in sectors such as basic metals and other industrial products.

In contrast, food inflation moderated slightly to 1.90 percent in March from 2.19 percent in February, with vegetable prices witnessing a notable decline.

The overall wholesale inflation rate has been on an upward trend, rising from 2.13 percent in February and 2.25 percent in March last year, indicating sustained price pressures in the economy.

Meanwhile, retail inflation based on the consumer price index edged up to 3.4 percent in March. The Reserve Bank of India, which primarily considers retail inflation while setting policy rates, recently kept interest rates unchanged in its latest monetary policy review.