India's Inflation Jumps to 4.38% as Hormuz Oil Shock Lifts Global Price Risks
Updated
Updated · Asia Times · Jul 14
India's Inflation Jumps to 4.38% as Hormuz Oil Shock Lifts Global Price Risks
3 articles · Updated · Asia Times · Jul 14
Summary
India’s June consumer inflation rose to 4.38% from 3.93% in May, beating all forecasts and marking the clearest sign yet that Gulf energy disruption is feeding through to prices.
India is among the most exposed economies: it imports 85% of its fuel, with about half its crude and most LPG and natural gas moving through the Strait of Hormuz.
Brent crude has climbed more than 3% since the weekend toward $78 a barrel after fighting resumed last week, raising diesel, transport and eventually food costs through India’s supply chain.
The Reserve Bank of India has already projected 5.1% inflation for the coming fiscal year while warning on softer growth, signaling the soft-landing outlook has weakened.
Broader pressure is already visible elsewhere: eurozone energy inflation was still 8.7% in June, and the OECD lifted its 2026 G20 inflation forecast to 4.0% from 2.8%.