India's inflation tops 4% target, Sanjay Malhotra cites supply disruptions
India's inflation has jumped past the RBI's 4% target after a long stretch of stability, and RBI Governor Sanjay Malhotra says it is mostly because of supply disruptions.
He is pointing to ongoing Middle East tensions and worries about a weak monsoon season as key reasons prices are rising.
RBI to review rates in August
The paragraph notes that strained oil supplies from the Strait of Hormuz, where 20% of the world's crude passes through, are hitting India especially hard, since India imports nearly all its oil.
Even with these pressures, the RBI has not raised its benchmark rate this year, but it will review it again in August.
Malhotra urged policymakers to stay cautious given uncertain oil markets and tricky weather forecasts; what the RBI decides next could shape India's economy for months ahead.