Inflation prints: Wholesale, retail paths diverge amid West Asia turmoil

The divergence between India’s wholesale and retail inflation has returned with a vengeance. In April 2026, wholesale price index (WPI)-based inflation vaulted to a staggering 8.3 per cent, up from 3.9 per cent in March, while consumer price index (CPI) based inflation remained relatively steady at 3.5 per cent. This sharp decoupling, triggered by the West Asia conflict, highlights the differing composition of the two indices, Crisil said in a report. Over financial years 2017-2026, the volatility of WPI, measured by standard deviation, was almost three times higher than that of CPI, according to the rating agency. While the CPI includes services items, the WPI dominated by manufac­tured items acts as the economy’s first responder to global commodity shocks. The conflict has sent crude petroleum (88.1 per cent) and aviation turbine fuel (142 per cent) prices skyrocketing in April, contributing to WPI volatility that is now three times higher than that of its retail counterpart.