India’s inflation ticked up in May to 3.93%, staying just above the RBI’s 4% target. The rise reflects persistent fuel price pressures from global energy markets, particularly the Iran conflict, which pushed crude costs higher. Despite the uptick, state-owned refiners kept adjustments modest, avoiding a spike.

The government introduced new restrictions on diesel sales for 90 days to ease market strain. Analysts note this development signals ongoing challenges for policymakers as they balance growth and stability. The latest data underscores the complexity businesses face amid rising input costs.