India wholesale inflation hits 38-month high in March

India?s wholesale inflation rose to a 38-month high of 3.88% in March, up from 2.13% in February, mainly due to a sharp rise in crude petroleum prices, higher fuel costs and stronger prices of manufactured products, according to data released by the Ministry of Commerce and Industry on Wednesday.

The increase in inflation was largely driven by higher prices of crude petroleum and natural gas, other manufacturing items, non-food articles, basic metals and food articles.

The fuel and power index rose 4.13% in March compared to February. Within this, mineral oil prices increased 8.77%, while electricity prices declined by 5.07% during the month.

Prices of manufactured goods increased 0.88% in March. Out of 22 manufacturing groups, 16 recorded price increases, while 6 saw declines.

Meanwhile, the year-on-year inflation rate based on the WPI Food Index remained unchanged at 1.85% in March.