Already elevated global food and fuel prices are expected to become more volatile if the war in West Asia following Hamas' attack on Israel escalates to a scale where it disrupt supplies, hampering recent efforts of the government and the Reserve Bank of India (RBI) to contain retail inflation, they said requesting anonymity.
Aditi Nayar, chief economist and head, research and outreach at ICRA Ltd said, "The extent of the duration of the conflict, and its impact on fuel prices and supply chains for food and other inputs will influence the impact on inflation metrics."
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