Impact of rising crude oil prices on inflation won't be substantial: FM

The impact of the ongoing geopolitical clashes in West Asia and rising global crude oil prices on inflation is not estimated to be substantial at this point, given that India’s inflation is near the lower bound, Finance Minister Nirmala Sitharaman told Parliament on Monday.

- RUCHIKA CHITRAVANSHI

In a written statement, Sitharaman said the medium-term impact of rising global crude oil prices on inflation would depend on several factors. These include exchange rate movements, the global demand-supply situation, monetary policy transmission, the state of general inflation, and the extent of indirect pass-through.

According to the FM’s reply, the government has taken several steps to control inflation and mitigate its impact on the common citizen, such as augmenting buffer stocks of essential food items, strategic sales of procured grains in the open market, facilitating imports, and imposing export curbs during periods of short supply.