Bank of Baroda warns fuel and weather could lift India inflation in FY27 fast

Published on 13 May 2026

Heatwaves and El Nino may fuel food inflation

Bank of Baroda says India’s inflation outlook for FY27 faces rising risks despite currently low CPI and stable core inflation. Higher fuel prices can ripple into food costs, while heatwaves and global patterns like El Nino could further strain crop output. The bank urges close monitoring of food inflation as energy and weather shocks build.

Fuel price pass-through could raise inflation pressure in FY27
Weather risks like heatwaves and El Nino may hit food prices
Core inflation is stable, but food inflation needs watchfulness
Global energy costs are adding to the inflation mix

#inflation #el nino #food inflation #fuel prices #weather risks

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Bank of Baroda warns fuel and weather could lift India inflation in FY27 fast

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