India's factory-gate inflation, as measured by the wholesale price index (WPI), increased to 3.88% in March 2026, marking a 38-month high compared to 2.13% in February. The surge was primarily driven by rising prices in crude petroleum, natural gas, and manufactured goods. Notably, inflation in primary goods reached a 14-month high of 6.36%, while the fuel and power segment recorded a month-on-month increase of 4.13%, transitioning from a deflation of -3.78% in February. This is the first positive reading after 11 months of deflation. The inflation rate for manufactured products also climbed to a 40-month high of 3.39%. Senior economist Rahul Agrawal from ICRA noted that core WPI inflation rose to 3.7%, the highest in 41 months. Looking ahead, analysts expect WPI inflation to continue rising, potentially reaching 4.8% in April 2026, influenced by global energy prices and shipping costs.