Rising crude, gas and coal prices will push up inflation and slow down growth
MUMBAI: The sharp rise in crude oil, natural gas and coal prices is extremely difficult for stock markets and the Indian business community, which are still reeling from the potential impact on the bottom line over the next few quarters. Consumers are frustrated by their rising costs behind fuel which raises inflation concerns. "If global prices for crude oil, natural gas, coal and electricity remain at current levels until December 2021 and rise modestly by 3 per cent by March 203, a 1 per cent rise in retail inflation (CPI) is likely to have an impact," Nomura said in a note. Nomura estimates that a 10 per cent rise in crude oil prices could push up inflation in India by about 0.5 per cent, the current account deficit could grow by 0.5 per cent of the country's GDP and the GDP growth rate could fall by about 0.2 per cent. "We expect industrial production to shrink in September / October due to shortage of semiconductors and coal," he said. GDP growth in th