WPI report red flags plastic packaging inflation
The wholesale price index jumped to 3.88% in March as the ongoing West Asia crisis triggered a significant surge in global energy and raw material costs.
16 Apr 2026 | 236 Views | By Divya Subramaniam
India's wholesale inflation climbed for the fifth consecutive month to reach its highest level in over three years. Data released by the Ministry of Commerce and Industry on 15 April 2026 indicated that the Wholesale Price Index (WPI) rose to 3.88%, a sharp increase from 2.13% in February and 2.25% in March 2025. This inflationary pressure was primarily fueled by a spike in crude petroleum, power, and manufactured items.
The conflict in West Asia led to a rapid escalation in global energy prices. The cost of India’s crude oil basket surged by more than 60% within a single month, with crude petroleum inflation alone reaching 51.57%. While the government reduced excise duty by INR 10 per litre on 26 March to protect consumers at the pump, industrial producers faced significantly higher input costs.
The packaging and plastics sectors were notably impacted by these shifts in the petrochemical chain. Wholesale prices for plastic bags rose by 3.5% compared to February, representing the sharpest sequential increase since 2021. Other critical materials, including corrugated paper board, became 3% more expensive. Additionally, wholesale rates for Poly Vinyl Chloride (PVC) and ammonia gas increased by 8.4% and 22.3% respectively.
Manufactured products overall saw inflation rise to 3.39%. Economists noted that WPI serves as a reflection of global commodity shocks, capturing the energy crisis more accurately than retail metrics. Although consumer price inflation remained relatively stable at 3.4% in March, experts suggested that companies may soon transfer these elevated production costs to the end-user.
The RBI maintained the repo rate at 5.25% last week but warned of future inflationary risks. Projections suggest retail inflation could reach 4.6% in the 2026-27 period, while GDP growth is expected to moderate to 6.9%. Megha Arora, director-economics of India Ratings & Research, said that further currency depreciation and continued regional instability could push wholesale inflation toward 4.7% in April.