Inflation affected by global oil price

Inflation is currently being supported by three factors: the price of food, the government’s management of pricing, and monetary policies. However, the inflation rate may not remain at its current low level due to many factors. Analysts have predicted that if global oil prices remain at $100 a barrel, inflation may reach 3.5 per cent, but if the price reaches $120 a barrel, the rate will breach the 4 per cent limit.