India’s commodity costs to stay higher even as war ends
An economist from the Bank of Baroda predicts that commodity prices in India will remain elevated for several months due to supply chain disruptions and the impact of a strong El Niño. Despite the end of the U.S.-Iran war, inflation in fuel, power, and industrial goods continues to rise.
Why it matters
Persistent inflation in essential commodities and industrial goods poses a significant challenge to India's economic stability and fiscal outlook for 2027.
Commodity prices would stay elevated for a few more months even as the U.S.-Iran war comes to an end, due to second order effects on supply chain, according to a study by Sonal Badhan, Economist at Bank of Baroda.
The report relies on economic data and expert analysis without injecting ideological bias.
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