Rising global oil and coal prices pose macro risks: Analysts

The rising commodity prices expose India to macro risks including on the already elevated inflation and growth fronts, a foreign brokerage said on Thursday. There has been 14 per cent jump in oil prices to $83 per barrel and 15 per cent rise in coal rate to $200 per metric tonne, analysts at Morgan Stanley said. “This rise in energy prices, specifically oil, has prompted concerns of higher inflation, slower growth and whether this could lead to disruptive monetary policy tightening,” they said. They added that there are upside risks to inflation, and growth will only improve from a two-year compounded annual growth rate, which will lead to normalisation of the policy.