ICICI Bank Report: Energy Costs to Push CPI Inflation to 4.5% by FY27
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Energy Costs to Drive India's CPI Inflation to 4.5% by FY27: ICICI Bank Report
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News18•26-03-2026, 10:00
Energy Costs to Drive India's CPI Inflation to 4.5% by FY27: ICICI Bank Report
•ICICI Bank projects India's retail inflation (CPI) to reach 4.5% in FY27, up from an earlier 3.9% forecast.
•The upward revision is due to increased weightage of petrol and diesel in the consumer basket under new measures.
•Changes in the structural composition of the revised CPI series heighten the economy's sensitivity to global oil price fluctuations.
•A USD 10/bbl increase in oil prices could lead to a 50-60bps overall impact on CPI inflation.
•Wholesale inflation also shows significant sensitivity, with a 10-dollar oil price change having a ~70bps direct impact and ~40-50bps indirect impact.
