A new report by Crisil has warned that rising global input costs may increase inflation pressure in India over the coming months.
According to the report, manufacturers are facing higher costs due to expensive crude oil, natural gas, copper and aluminium. The situation worsened after the closure of the Strait of Hormuz, a key global oil shipping route.
The report said companies may gradually pass these higher costs to consumers, which could push up Consumer Price Index (CPI) inflation, especially core inflation.
The report said Wholesale Price Index (WPI) inflation is already showing signs of pressure.
Overall WPI inflation rose sharply to 8.3 percent in April 2026 from 3.9 percent in March. Non-food WPI also jumped to 10.9 percent from 4.7 percent.
Among key commodities, copper prices surged 17.3 percent, aluminium rose 20.6 percent, crude oil-linked products climbed 49.3 percent, while gas-related products increased 19.1 percent.
Input Costs Continue To Rise
Crisil said the company’s input-output ratio crossed the important 1.0 level in April after staying below it for nearly 44 months.
This ratio indicates whether input costs are rising faster than selling prices. Input prices increased 6.2 percent during the month, while output prices rose only 0.7 percent.
The report noted that industries such as steel, chemicals, fertilisers, plastics, synthetic rubber, man-made fibres and non-ferrous metals are facing heavy cost pressure.
Demand Holding Up In Domestic Market
Despite higher costs, domestic demand in India has remained stable so far. Because of this, companies may still have room to increase prices without hurting sales significantly.
The report added that even if the Strait of Hormuz reopens, input costs are expected to remain elevated this year.
West Asia Conflict Adds Pressure
The report described the ongoing West Asia conflict as one of the biggest oil shocks in recent years.
According to Crisil, the disruption has widened beyond oil and is now affecting several industrial raw materials used in manufacturing.