March inflation rises by 7.3%

Urban CPI inflation climbed to 7.4% year-on-year in March, up from 6.8% in February and well above the 1.2% recorded in March 2025. On a monthly basis, urban prices rose 1.3%, picking up from a 0.3% increase in February and slightly above the 0.8% rise seen in the same month last year.

Rural inflation eased marginally on an annual basis, slipping to 7.2% YoY from 7.3% in February, though still dramatically higher than the flat reading  no change   recorded in March 2025.

Monthly rural prices increased 1.0%, up from 0.3% in February and broadly in line with the 1.1% rise seen a year earlier.

The Sensitive Price Index rose 5.6% YoY in March, accelerating from 4.8% in February and swinging sharply from a 2.3% contraction recorded in March 2025.

On a monthly basis, the SPI increased 0.7%, reversing the 0.1% decline seen in both February 2026 and March 2025.

Wholesale price pressures surged notably. The Wholesale Price Index jumped 6.7% YoY in March, compared to just 1.0% in February and a 1.6% contraction in March 2025.

On a monthly basis, WPI rose a steep 5.9%, accelerating from 0.7% in February and well above the 0.3% increase recorded a year earlier.

Core inflation signals showed a modest but broad-based pickup. Urban non-food non-energy (NFNE) inflation edged up to 7.4% YoY from 7.1% in February, though still below the 8.2% seen a year ago.

Monthly urban NFNE rose 0.7%, picking up from 0.2% in February and above the 0.5% increase recorded in March 2025.

Rural NFNE also firmed, rising to 8.4% YoY from 8.3% in February, though continuing its downward trend from the 10.2% recorded in March 2025. On a monthly basis, rural core prices rose 0.8%, up from 0.4% in February and above the 0.7% rise seen a year earlier.

The 20% weighted trimmed mean pointed to a broadening of underlying pressures. Urban trimmed mean inflation rose to 5.9% YoY from 5.1% in February and above the 4.8% in March 2025, with monthly growth of 0.6%. The rural trimmed mean climbed to 6.3% YoY from 5.6% in February and 4.8% a year earlier, with a monthly increase of 0.5%.

Overall, the March data signals a further broadening and intensification of inflationary pressures, with headline inflation accelerating across both urban and rural economies. 

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