TIL Desk/Business/Mumbai/ At least 59 per cent of the accelerated inflation is attributable to the impact of the geopolitical conflict triggered by the Russian invasion of Ukraine, economists at SBI said on Monday.
In the face of the heightened inflation situation the headline number touched nearly 7.8 per cent for April, and the RBI is set to hike rates by another 0.75 per cent to get the repo rate back to the pre-pandemic level of 5.15 per cent, they added.
The economists said they did a study of the Russian invasion’s impact on inflation, which revealed that 59 per cent of the jump in prices is due to geopolitical events.
Using February as the base case, the study revealed that because of war alone, food and beverages, fuel, light and transport contributed 52 per cent of the increase, while another 7 per cent impact came from the jump in input prices for the FMCG sector.
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