India's Inflation Likely Hit 5.4% in September as Oil Costs Bite
India's Inflation Likely Hit 5.4% in September as Oil Costs Bite Davenport said Constellation Energy's 20-year deal… What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… India’s inflation is estimated to have accelerated to 5.4% in September, up from 4.82% in August, on the back of soaring oil prices and energy and food costs, aReuters pollof economists showed on Thursday.
The forecasts of the 41 economists surveyed by Reuters ranged from 4.9% to as much as 5.9%.
Apart from food and beverage inflation, “we are also beginning to see clearer evidence of energy prices spilling over into other parts of the CPI, rather than just transport,” ANZ economist Dhiraj Nim told Reuters.
Accelerating inflation prompted India’s central bank on Wednesday to raise key interest rates for the first time in four years.
The Reserve Bank of India also shifted its policy stance to “calibrated tightening,” signaling rate cuts are off the table in the near term, Deepali Bhargava, Regional Head of Research, Asia-Pacific, at INGsaid.
The Indian crude import price averaged116.09per barrel in September, according to government data.
So far in October, it has averaged above $120, at $120.06 per barrel.
TheIndian basket of crude oilis the average of a derived basket comprising a sweet-grade benchmark, Dated Brent, and the sour-grade benchmark of the Oman and Dubai average imported by Indian refineries during each month.
Moreover, shipping costs on all global sea lanes are skyrocketing as trade becomes less efficient amid re-routes, longer voyages, and falling tanker availability.
India, specifically, has seen its crude oilimport bill soarsince the Iran war choked Middle Eastern oil supply, raised benchmark crude prices, quadrupled freight rates, and boosted insurance on a single Strait of Hormuz voyage to never-before-seen highs.
India has been paying elevated prices to import Middle Eastern crude not only because of the spike in oil prices, but also due to the surging costs to bring supply from the nearest region from which it can import crude.
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| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
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