India's wholesale inflation surged to 3.88% year-on-year in March 2026, marking the highest level in 38 months, up from 2.1% in February. This increase is primarily attributed to rising prices of crude oil, power, and manufactured goods, exacerbated by geopolitical tensions in West Asia. The Wholesale Price Index (WPI) data revealed that retail inflation also rose to 3.4% in March, driven by escalating food and fuel prices. The commerce and industry ministry highlighted that supply disruptions significantly increased input costs for various materials, including sulphuric acid (up 77.2%) and brass metal (up 22.9%). The fuel and power segment saw a positive inflation rate of 1.1% in March, reversing a previous deflation of 3.8% in February. Notably, crude petroleum prices spiked 51.6% in March, following a decline in the previous month. Manufactured products, which constitute a significant portion of the WPI basket, experienced a price increase of 3.4% in March, with 16 out of 22 sub-groups recording price hikes. Inflation in primary articles rose to 6.4%, with food prices increasing by 1.85% overall, despite declines in some categories like cereals and pulses.