Indian Finance Minister Nirmala Sitharaman confirmed that the government in New Delhi does not expect a noticeable rise in inflation rates as a result of the significant increase in global crude oil prices, which resulted from the current events in the Middle East region. She noted that domestic price levels are still close to the lower end of the range considered acceptable by the Reserve Bank of India.
Oil prices had risen by up to 26% at the beginning of trading, recording their highest level since July of 2022. Some major oil-producing countries in the Middle East have reduced the volume of supplies, due to their inability to ensure the safe passage of shipments through the Strait of Hormuz to refineries around the world.
Citharamen reported, according to what was reported by Reuters, that global oil prices, including the crude oil imported by India, witnessed a decline over the course of an entire year, until the escalation of events in the region on February 28.
The response also stated that Indian oil prices rose from $69.01 per barrel at the end of last February to $80.16 per barrel by the second of this March.
The Indian government explained that the impact on the prices of goods and services for consumers will be limited at the present time.
“Given that inflation in India is close to the minimum level, estimates do not indicate that the impact on inflation will be significant at this stage,” Sitharaman added.
It is noteworthy that the inflation rate in the retail sector reached 2.75% last January, which is a number close to the lower end of the range targeted by the Reserve Bank of India, which ranges between 2% and 6%. (Arabic)
