IMF Flags Inflation Risk for India if Energy Prices Stay High
What Happened
The IMF has warned that a prolonged Middle East conflict could keep energy prices elevated and increase inflation and cost-of-living pressures across Asia, including India. Its October 2026 regional outlook says India, Japan and South Korea have partly adapted by securing oil from alternative sources, helping their oil flows return to pre-conflict rates since June.
Key Takeaways
India has shown resilience to energy supply disruptions, but sustained high fuel prices remain a downside risk. The IMF still projects India’s economy to grow 7% in 2026, supported by domestic demand and services.