Finance Ministry Warns of Inflation Risks Amid Rising Fuel Prices
The Union finance ministry has identified inflation risks linked to rising fuel prices and global volatility, despite retail inflation remaining at 3.48% in April, slightly up from 3.4% in March. Wholesale inflation surged to 8.3%, driven by global energy prices and rupee depreciation. The ministry highlighted that recent petrol and diesel price hikes may impact retail inflation through increased transport and food costs. It noted that the macroeconomic position remains resilient, supported by strong services exports and stable foreign exchange reserves. However, the report cautioned about potential food inflation due to a forecasted below-normal monsoon, with rainfall expected at 92% of the long-period average. The ministry emphasized the need for sustained policy vigilance to navigate the uncertain global environment and maintain growth momentum.
Published 7 hours ago • 31 May 2026, 06:30 AM IST