New Delhi, March 6 -- The depreciating Indian rupee and the global commodity prices can impact the inflation targeting of the country, according to a report Bank of Baroda.

The report highlighted that a depreciating rupee could increase the cost of imports, leading to higher inflation.

Additionally, global commodity prices, which had been easing, may start rising again due to trade policies like tariffs imposed by the United States. These factors pose an upside risk to India's inflation outlook.

It said, "upside risks emanate from a depreciating rupee which poses risks of imported inflation and bottoming out of commodity price cycle from threats of tariff imposed by the US".

The report also highlighted that India's consumer price inde...