Recent increases in petrol and diesel prices could directly add about 36 basis points to India's headline inflation in the coming months, the Reserve Bank of India said on Friday, warning that elevated energy prices and supply disruptions are likely to weigh on economic activity.
"The increase implies a direct impact of about 36 basis points on headline inflation, which, along with second order effects, would get reflected in CPI inflation in the coming months," RBI Governor Sanjay Malhotra said.
