FM Sitharaman says oil prices won't impact inflation much
Finance Minister Nirmala Sitharaman reassured Parliament that the recent spike in global oil prices, sparked by tensions in the Middle East, won't push up India's inflation much.
She explained, "Given that India's inflation is near the lower bound, the impact on inflation is not estimated to be substantial at this point."
Oil prices have jumped 26% after airstrikes in Middle East
Oil prices have jumped 26%, the highest since July 2022, after airstrikes raised tensions in the region, and as supply routes through the Strait of Hormuz became riskier.
Retail inflation stayed low at 2.75% in January
Even though India's crude basket price shot up from $69 to $80 per barrel in just a few days, retail inflation stayed low at 2.75% in January.
Some food items showed higher inflation, while core inflation had been elevated at times earlier in the fiscal year.
Future impacts and projections
Sitharaman says future impacts depend on things like exchange rates and global trends.
The source does not report a CRISIL projection for fiscal 2027; it notes that changes in how CPI is calculated should help keep it manageable.