Crude near 120 sparks rupee fear and inflation risk even as demand holds steady

Buffering is working now but oil spike could force retail shocks

Brent crude climbing and a weakening rupee are putting India’s inflation and growth outlook under pressure. For now, policymakers are cushioning the blow through controlled fuel pricing and tax tweaks that limit immediate retail impacts. But if oil prices stay elevated, those buffers may fail—pushing retail fuel and broader inflation higher with a stronger macro effect.