The increase in energy prices is expected to have adverse impact on India, given that the country is heavily dependent on import of major energy commodities.
The latest World Bank forecast is a 16-percentage point upward revision from October's outlook, the World Bank said in its April Commodity Markets Outlook released on Tuesday.
Oil prices are forecast to average $65 a barrel over 2018, up from an average of $53 a barrel in 2017, on strong demand from consumers and restraint by oil producers, while metals prices are expected to rise 9 per cent this year, also on a pickup in demand and supply constraints, the World Bank said.
Agricultural commodities, including food commodities and raw materials, are anticipated to see a price rise of over 2 per cent this year on diminished planting prospects. Weather disruptions are expected to be minimal, the report said. “Accelerating global growth and rising demand are important factors behind broadbased price increases for most commodities and the forecast of higher commodities prices ahead,” said Shantayanan Devarajan, World Bank Senior Director for Development Economics and acting Chief Economist.