Why India's consumers may stay cautious despite easing oil prices
Mumbai, June 24 -- Consumer sentiment, which weakened for the third consecutive month in May, is unlikely to recover quickly despite easing geopolitical tensions. Economists say higher fuel costs, sticky food inflation and a delayed monsoon are likely to keep households cautious over the coming months.
While Brent crude has dropped more than 30% from its US-Iran war-time peak of around $113 a barrel to about $78, hovering slightly above its pre-conflict level of around $74, it may not be enough to revive confidence.
The country is currently facing a rainfall deficit of around 40%. With central India being the worst affected, concerns are mounting over sowing in rain-fed states such as Maharashtra, Madhya Pradesh and Chhattisgarh.
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