Reserve Bank of India Governor Malhotra said inflation remains elevated and
recent price pressure has been driven mainly by supply-side factors. Official
data earlier this week showed inflation rose above the RBI’s 4% target for the
first time in 18 months. The central bank has held its policy rate at 5.25% so
far this year; Malhotra said it is still too early to discuss tightening. Since
his remarks, renewed US–Iran hostilities have threatened shipping through the
Strait of Hormuz; India relies on imports for about 90% of its oil, and before
the end‑February escalation roughly half of those imports passed via that route.
