According to the Bank of Baroda (BoB), fuel inflation is expected to ease in the coming months due to weak demand in the US and China. The bank’s report suggests that the demand for oil has been declining in these two major economies, which has led to a surplus in the global oil market. This surplus has, in turn, put downward pressure on oil prices, which are expected to ease fuel inflation.
The report also highlights that the ongoing trade tensions between the US and China have had a negative impact on global trade, leading to a decline in demand for oil. Additionally, the bank notes that the US has been experiencing a slowdown in its economy, which has also contributed to the decline in oil demand.
The BoB report suggests that the easing of fuel inflation will have a positive impact on the Indian economy, as it will help to reduce the burden on consumers and businesses. The bank also expects that the easing of fuel inflation will lead to a reduction in the country’s current account deficit, which is a key indicator of a country’s economic health.