Amid the ongoing invasion of Ukraine by Russia, a sustained rise in oil and food prices would adversely affect Asia’s economies through higher inflation, weaker current account and fiscal balances, and a pressure on economic growth. India, Thailand and the Philippines are being seen as the biggest losers, while Indonesia would be a relative beneficiary, Nomura said in a report Friday.
Meanwhile, in a separate report, Icra said impact of excise duty cut on CPI inflation would be muted if such rates are rolled back to pre-pandemic levels, adding that a reduction in excise duty on motor spirit and high-speed diesel to pre-pandemic rates would entail a total revenue loss to the Centre of Rs 920 billion in FY2023.
For every 10 percentage points increase in oil prices, retail inflation of India is expected to rise by 0.4 percentage points and GDP growth is expected to be reduced by 0.2…
