Gita Gopinath flags inflation, more fuel hikes likely; says rupee at 100 no worry

Key points

• IMF Deputy Managing Director and Harvard professor Gita Gopinath has warned that India could face sharper fuel price hikes, higher inflation and slower growth if the ongoing West Asia conflict stretches deeper into June, with crude oil prices potentially surging to $140 a barrel.
• Speaking to India Today TV, Gopinath said the conflict had turned into a “global supply shock” impacting oil, LPG, LNG and fertilisers, with shortages now becoming as serious as rising prices.
• Read Full Story “We are certainly seeing that in India, which relies a lot on the Middle East for its fuel,” she said.
• “It’s not just about the prices, but it’s about the shortages.” Her warning comes as tensions around the Strait of Hormuz continue to disrupt global energy supplies, pushing governments worldwide to rely heavily on reserves.
• OIL COULD HIT $140 A BARREL Gopinath said the current situation could worsen significantly if supply disruptions...