When the rupee weakens, things we import get costlier, especially fuel.
The Reserve Bank of India, or RBI, points out that every 5% drop in the rupee can bump up inflation by about 0.35%.
With global oil prices elevated, businesses are feeling squeezed and have started raising prices on goods and services.
Experts like Gaura Sengupta from IDFC First Bank warn that gasoline and diesel could get even more expensive soon, which might push overall inflation closer to 5%.