SBI Research Warns Global Stagflation
Analysis based on 7 articles · First reported Apr 05, 2026 · Last updated Apr 05, 2026
The global markets are impacted by the forecast of slowing growth and rising inflation, driven by geopolitical tensions in West Asia and disruptions in energy supply chains. This could lead to a stagflationary scenario, with India facing heightened macroeconomic pressures from imported inflation and a weakening India — Indian rupee.
A report by SBI Research forecasts a downward revision of global GDP growth and intensifying inflationary pressures due to escalating geopolitical tensions, particularly in West Asia. The report highlights severe disruptions in energy supply chains, including the de facto closure of the Strait of Hormuz, which has significantly impacted Petroleum flows and prices. This situation raises concerns about a possible stagflationary scenario, with G20 inflation projected to be 1.2% higher. For India, these global developments are translating into heightened macroeconomic pressures, with Petroleum prices above $100/bbl leading to increased imported inflation and the India — Indian rupee weakening beyond 93 per dollar.
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