New Delhi, 09 March (H.S.): Finance Minister Nirmala Sitharaman assured Lok Sabha Monday that surging global crude prices won't significantly stoke domestic inflation, given CPI's proximity to its lower bound.

Responding to a written query on government's assessment of oil's inflationary impact, she noted the Indian basket's FOB price jumped from $69.01 to $80.16 per barrel (late Feb-Mar 2). No substantial effect anticipated now, she stated, though medium-term risks hinge on exchange volatility, global supply-demand, monetary pass-through, baseline inflation, and indirect effects.

RBI's Oct 2025 Monetary Policy Report projects +0.3% CPI rise if oil exceeds baseline by 10% with full pass-through. Futures hit record $114.29/barrel (+26%) amid West Asia supply fears.

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Hindusthan Samachar / Jun Sarkar