economy
India’s consumer inflation rises to 3.21% in February as oil risks loom
India's inflation for February is within central bank's comfort level range but policy action is unlikely due to rising global energy prices
TL;DR
- India's consumer inflation increased to 3.21% in February, up from 2.75% in January.
- Food inflation also rose, from 2.13% in January to 3.47% in February.
- The consumer price index base year was updated to 2024 from 2012.
- Global oil price hikes due to Middle East conflict are disrupting India's crude oil and LPG imports, which largely transit through the Strait of Hormuz.
- While inflation is within the Reserve Bank of India's target, rising oil prices are unlikely to trigger policy action and may curb the central bank's dovish stance.