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2026-05-27 21:41:10
[The closure of the Strait of Hormuz triggers inflation in India, with crude oil and metal prices soaring, and the 8.3% WPI sounding the alarm] ⑴ Indian rating agency Crisil warned that the closure of the Strait of Hormuz has led to rising prices for crude oil, natural gas, and metals, which will exacerbate inflationary pressures in India. Rising manufacturing costs are gradually being passed on to consumers, especially with core CPI inflation facing upside risks. ⑵ Data shows that India's overall wholesale price index inflation rate surged from 3.9% in March to 8.3% in April, while the non-food WPI jumped from 4.7% to 10.9%. Among key commodities, copper prices rose 17.3%, aluminum rose 20.6%, crude oil-related products surged 49.3%, and natural gas-related products rose 19.1%. ⑶ Crisil pointed out that after 44 consecutive months below 1.0, the input-output ratio of enterprises broke through this key level in April. Input prices rose 6.2% that month, while output prices rose only 0.7%, putting severe cost pressures on industries such as steel, chemicals, fertilizers, plastics, and non-ferrous metals. (4) Despite stable domestic demand, companies still have room to raise prices without significantly impacting sales. Even if the Strait of Hormuz reopens, input costs are expected to remain high this year. The conflict in West Asia is considered one of the most severe oil shocks in recent years, and its impact has extended beyond the energy sector, affecting various industrial raw materials.
