New Delhi, Jan. 15 -- Escalation of tensions between the United States and Iran could add to upside risks to inflation in India, as it may push global commodity prices upwards, highlighted a report by Bank of Baroda.

The report highlighted that geopolitical risks remain a key concern. Any escalation in tensions could push commodity prices higher, especially energy and industrial commodities, which would add to upside risks to inflation in India.

It stated "Any escalation in tensions between US and Iran may also push commodity prices upwards and add to upside risks to inflation".

The wholesale price index (WPI) inflation eased to 0.8 per cent in December 2025, compared to a 2.6 per cent increase in December 2024.

However, inflation was...