Oil Price Spike Has Limited Effect on India Inflation: Crisil

New Delhi, Apr 14 (BNP): Despite a sharp rise in global energy prices driven by the ongoing West Asia conflict, India’s retail inflation has so far remained largely stable, according to Crisil Intelligence.

The report noted that even a month after the escalation in tensions, the transmission of higher global fuel costs into domestic retail inflation has been limited.

It pointed out that Brent crude prices jumped around 45 per cent in March, while international natural gas prices surged nearly 69 per cent compared to the previous month. However, this steep increase in global energy markets has not yet significantly affected consumer prices in India.

Crisil said the muted impact so far reflects limited pass-through of global energy shocks into domestic inflation in the short term.

However, it warned that inflationary pressures could increase if geopolitical tensions persist and energy prices remain elevated for a longer period, potentially affecting price stability in the coming months.