Reserve Bank of India Flags Inflation Risk From West Asia Crisis | Sanjay Malhotra

Reserve Bank of India Governor Sanjay Malhotra has raised a red flag on inflation, warning that the ongoing West Asia conflict could trigger long-term price pressures in India. Speaking at Princeton University, he highlighted the risk of “second-round effects,” where initial spikes in oil and supply disruptions feed into broader inflation across the economy. With crude prices elevated, sectors like transport and manufacturing could see rising costs, eventually impacting consumers. While the RBI is not looking to hike interest rates immediately, prolonged disruption may limit its options. The key concern remains preventing inflation from becoming entrenched. Should India brace for sustained price rise? The global conflict could have deeper economic consequences than expected.