Commodity prices in India, particularly fuel, have surged in recent weeks as global energy costs have risen due to supply problems following Russia’s invasion of Ukraine and the increase in demand following the COVID-19 epidemic. Over the past two weeks, petrol prices in Delhi have risen by 8.40 rupees, while CNG tariffs have risen by about 6.5 rupees per kilogram after seven hikes.
After Russian President Vladimir Putin approved a special military operation in Ukraine’s Donbass region on Feb. 24, Brent crude oil prices hit $100 a barrel for the first time since 2014.
In the days that followed, US West Texas Intermediate crude futures hit a high of $130.50 a barrel, the highest since July 2008, before falling back. Brent also hit a new high of $139.13, matching its previous high from July 2008.
Brent crude futures were down $1.01, or 1%, at $103.38 a barrel at 2223 GMT on Monday. WTI crude futures fell 84 cents, or 0.9%, to $98.43 a barrel.
Rising global crude oil prices following the Russian-Ukrainian conflict have impacted Indian household budgets, with recent increases in fuel and diesel costs, as well as more expensive vegetables and electricity .
Over the past two weeks, petrol prices in Delhi have risen by 8.40 rupees, while CNG tariffs have risen by about 6.5 rupees per kilogram after seven hikes. Apart from this, the increase in transport expenditure has pushed up the prices of many commodities due to the hike in diesel tariffs which reached Rs 95.07 per litre.
Lemon prices in Rajkot, Gujarat have recently increased to Rs 200 per kg. “The price of a kilo of lemon is approaching Rs 200.” Previously, it was around Rs 50-60 per kg. This has an impact on our “kitchen budget”. “I don’t know when the costs will come down,” a market customer told ANI news agency.
Apart from this, milk costs have also increased in recent weeks. Due to rising input costs, companies like Amul, Parag and Verka raised their milk prices by Rs 2 last month. According to Jayen Mehta, Chief Operating Officer of Gujarat Cooperative Milk Marketing Federation (GCMMF), a distributor of Amul milk and dairy products, “This price increase is due to the growth in the cost of energy, packaging, logistics and calf feeding”. costs.”
The prices of cumin, coriander and chilli have also increased by 40-60% in recent days, according to research by Krishi Jagran. According to online travel agencies, rising global prices have raised the cost of air travel by almost 30% over the past month.
In terms of household gas pricing, the rating agency said town gas companies could be forced to pass on price increases in stages, which would lead to a delay in incomplete cost pass-through and, therefore, , pressure on the margins.
The RBI is expected to reassess its CPI inflation forecast at the next policy meeting, according to a research note from Japanese broker Nomura. “However, the RBI is likely to stress that inflationary pressures are only temporary and inflation will remain below the upper limit of 6%,” the report said.