RBI Warns of Inflation Risks Due to Supply Shocks

The central bank reported today that geopolitical conflicts and weather uncertainties are driving price risks. Strong fundamentals help the economy manage shocks.

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India is facing heightened inflation risks due to a combination of geopolitical tensions and volatile weather patterns, according to the latest monthly economic report from the central bank. The report, released on Thursday, highlights that supply-side disruptions are the primary drivers of this renewed pressure on the domestic economy.

A vendor organizes produce at a major vegetable market in Delhi, India, during early 2026. REUTERS/Anushree Fadnavis/File Photo
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