Surging Oil puts inflation on radar

Inflation in India has eased in recent months but this is only because of a high-statistical-base effect, which is set to wear off by the end of September. While the direct impact of the increase in fuel prices on the wholesale price index (WPI) will be limited, the indirect effect is likely to play out in the longer term. Petrol and diesel account directly for only 3% of the WPI but higher fuel prices will lift transport costs in other industries. Nearly two-thirds of freight in India is moved by road and the rest by railways, both of which rely

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