Global commodity prices, especially crude oil, natural gas and coal, have become a sore point for the markets and India Inc that is still grappling with the likely impact it will have on their bottom-line over the next few quarters. Consumers, on their part, are dealing rising fuel costs which is also fueling inflation concerns. A recent note by Nomura suggests that if global prices of crude oil, natural gas, coal & electricity were to stay at current levels till December 2021 and rise by a modest 5 per cent till March 2022, the total potential impact on the consumer price inflation (CPI) back home will be around 1 percentage point (pp). (See table below) “Domestic coal shortages will likely be resolved in a few months, but may lower industrial activity, while rising energy costs could accentuate inflationary pressures. The adverse terms of trade shock from higher energy prices are a headwind to medium-term growth,” wrote Sonal Varma, chief economist for India and Asia ex-Japan, Nomura in a recent co-authored note with Aurodeep Nandi. Brent crude oil prices have been rising steadily from around $65 a barrel in August-end to over $85 a barrel now, while natural gas prices have jumped by around 26 per cent from August levels, data show.