India Heat Wave Creates New Inflation Risks After Oil Surge

India is facing inflation threats from heat waves and below normal rainfall this year, creating new economic pressures for policymakers already grappling with soaring energy costs.

Temperatures of as high as 47C (117F) have gripped parts of northern India this week, and power demand has surged to a record in the country as households cranked up air conditioners and fans to cool down. The government is also predicting below-normal rains between the June and September monsoon season, which is crucial for farming activity.