India, Sept. 15 -- India's retail and wholesale inflation prints for August were largely on expected lines; at the cusp of 5% and 10% respectively. On a standalone basis, the inflation numbers are not too alarming. Most analysts see inflation for the September quarter as being only slightly higher than RBI's current estimate of 4.7%.

However, the developments in the last couple of weeks should caution us against assuming a business-as-usual scenario. Crude oil prices, thanks to the rapid military advances by the Iran-backed Houthi rebels in Yemen along the Red Sea coast, have caused a major disruption to Saudi oil supplies. Brent crude, the international benchmark, is already above $100 per barrel. Its dated variants, a better indicator ...