India says oil price surge unlikely to stoke inflation sharply
India does not expect inflation to rise substantially from a jump in global crude oil prices triggered by the war in the Middle East, as domestic price levels remain near the lower end of the central bank’s tolerance band, Finance Minister Nirmala Sitharaman says, Reuters reports.
Global oil prices, including India’s crude basket, had been falling for a year until conflict escalated in the region on February 28, Sitharaman said in a written reply in parliament.
The Indian basket rose from $69.01 a barrel at end-February to $80.16 a barrel by March 2, the reply said.
The government said the impact on consumer prices would be limited for now.
“Given that India’s inflation is near the lower bound, the impact on inflation is not estimated to be substantial at this point,” Sitharaman said.