The Reserve Bank of India (RBI) has flagged emerging fuel-price pressures and weakening consumer confidence amid the ongoing conflict in West Asia, even as it noted that crude oil prices have corrected sharply on expectations that the Strait of Hormuz will remain open and supply chains gradually normalise.
In its June Bulletin's "State of the Economy" article, the central bank said "consumer price index (CPI) inflation increased in May 2026 to 3.9 per cent from 3.5 per cent in previous month, driven by broad-based increases across food, fuel and core components."
