NEW DELHI: (Jun 24) The ongoing geopolitical tensions are unlikely to put a “significant pressure” on the rupee or inflation as global energy prices are lower than last year, which will limit current account outflows and domestic energy price pressures, S&P Global Ratings said on Tuesday.
S&P Global Ratings Economist Vishrut Rana said a key mitigating factor of India is that energy prices are still lower than last year –“ Brent crude oil traded at roughly USD 85/barrel a year ago and current prices are still lower.
“This will help contain both current account outflows and domestic energy price pressures — while energy prices may rise moderately, the path of food prices will have a higher impact on inflation. Overall, we do not expect significant pressure on the Indian rupee or inflation,” Rana told PTI.
