It was during the war that the country experienced inflation; Wholesale inflation breaks records

New Delhi : Crisis in West AsiaWholesale inflation rose to a 38-month high in more than three years at 3.88 percent in March, government data released on Wednesday showed, on the back of higher prices of fuel, electricity and manufactured goods. Inflation based on the Wholesale Price Index (WPI) rose for the fifth consecutive month in March.

Core inflation rose as primary food prices softened. Rising energy prices will eventually feed into other commodity prices, so wholesale inflation is likely to rise further in the coming months. Wholesale inflation reflects a rise in global commodity prices in March and a shock to energy prices from the US-Israeli-Iran conflict that began on February 28. Inflation based on Wholesale Price Index (WPI) was 2.13 percent in February and 2.25 percent in March 2025.

The main reasons for this were the rise in prices of crude petroleum and natural gas, other manufactured goods, non-food items, basic metals, manufactured goods and food items, the industries ministry said in a statement. According to WPI data, inflation in the fuel and energy category increased to 1.05 percent in March, compared to a decline of 3.78 percent in February. Inflation in crude oil rose to 51.57 percent in March compared to a decline of 1.29 percent in the previous month. Inflation in manufactured goods also rose to 3.39 percent in March from 2.92 percent in February.

Consequences of the War in West Asia

Financial services provider Barclays said the rise in global energy prices is gradually feeding through to other commodity prices. Wholesale inflation is likely to rise further in the future. However, food inflation eased to 1.90 percent in March from 2.19 percent in February.

There may be an impact on wholesale inflation

If international oil prices continue to rise, this could have an impact on overall wholesale inflation in the coming months. The ongoing crisis in West Asia following the US-Israeli attack on Iran has led to a sharp rise in global crude oil prices. Crude oil prices have risen more than 50 percent since the crisis began on February 28.

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