Rupee hits record low against dollar: What's the impact
The Indian rupee just slipped past the 93-per-U.S.-dollar mark for the first time, and that's got people talking about rising prices.
Since the Gulf conflict began, the rupee has lost about 3% of its value, making imports like oil and other essentials even pricier.
Economists say if this trend continues, India could see a noticeable jump in inflation.
Fuel prices to rise
When the rupee weakens, things we import get costlier, especially fuel.
The Reserve Bank of India, or RBI, points out that every 5% drop in the rupee can bump up inflation by about 0.35%.
With global oil prices elevated, businesses are feeling squeezed and have started raising prices on goods and services.
Experts like Gaura Sengupta from IDFC First Bank warn that gasoline and diesel could get even more expensive soon, which might push overall inflation closer to 5%.