Russian oil imports surge, inflation expectations rising

The goods trade data for July released this week show that Russia now accounts for more than half of India’s crude oil imports, the highest share on record. But that economic relationship could be tested once more following the US Senate's passing of legislation this month to impose tariffs of 100% on buyers of Russian oil. Meanwhile, household inflation expectations are on the rise, highlighting that the RBI can't get complacent about the subdued rate of core CPI inflation in the July data.