<div id="readability-page-1">Energy shock impact: April inflation in the US and India surged as oil prices spiked due to Middle East conflict, with energy driving a significant share of US CPI's monthly increase. Policy dilemmas ahead: Central banks face a balancing act as temporary shocks risk becoming entrenched; Fed rate cuts in 2026 now look unlikely, while RBI stays on hold. Spillover risks grow: Economists warn higher fuel costs could push up prices across goods and services, from groceries to airfares, tightening household budgets further.</div>

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<p>US and India experienced significant inflation increases in April, driven by surging oil prices due to Middle East conflicts. This energy shock contributed notably to the rise in the US Consumer Price Index (CPI). Central banks are now faced with challenges, as the likelihood of Fed rate cuts in 2026 diminishes, while the Reserve Bank of India maintains its current stance. Economists caution that rising fuel costs may lead to broader price increases across various goods and services, further straining household budgets.</p>

- April inflation in the US and India increased significantly due to rising oil prices linked to the Middle East conflict, impacting the US Consumer Price Index.  
- Central banks are faced with a challenging situation as temporary shocks may become permanent, with the Fed unlikely to cut rates in 2026 and the RBI maintaining current policy.  
- Economists caution that elevated fuel prices may elevate costs across a variety of goods and services, further straining household budgets.

BP p.l.c.

Occidental Petroleum

HSPC

SPDR O&G Equip

iShares US Oil & Gas Expl & Prod

VG Energy

SPDR Energy Select

United States Oil Fund LP

VanEck Oil Services ETF

Guotai CSI Oil & Gas Industry ETF

SPDR O&G Ex & Prd

VanEck Oil Refiners ETF

iShares US Oil Equip & Svcs

Bosera CSI Oil & Gas Resources Index ETF

ISHRS S&P Glb Engy

US and India inflation hit multi-year highs on energy surge