New Delhi, June 4 -- Surging energy costs and weak capital inflows may slow down economic recovery, fuelling inflation pressures, says a research report by ICICI Bank. Unlike other Asian countries, India is running on a domestic-driven capex cycle, with a below-normal monsoon forecast and higher fuel prices; food inflation risks are rising alongside broader input-cost pass-throughs. However, core inflation is expected to remain relatively stable.

As per ICICI Bank Global Markets report, inflation is speedily increasing, majorly led by food which now should also be driven by energy prices. However, "core inflation is far more stable."

The report noted, "core inflation excluding ornaments is still benign at around 2.1%. But most of this i...