The Reserve Bank of India (RBI) on Wednesday warned that volatile global crude oil prices remain a key risk to inflation, saying geopolitical tensions have clouded the near-term outlook even as broader price pressures remain contained.
In its monetary policy statement, the central bank said sharp swings in oil prices triggered by geopolitical developments continue to pose risks to the inflation trajectory.
"Global oil prices have remained volatile with sharp two-way movements triggered by geopolitical developments, blurring the near-term outlook. Although generalised inflation pressures continue to remain modest so far, the risks of higher food, fuel and other input prices translating into a broad-based increase in inflation persist," the Monetary Policy Committee (MPC) said.
