Impact of Increase in Oil Prices on Inflation and Output in India

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Special Articles

Indranil Bhattacharyya

Kaushik Bhattacharya

Vol. 36, Issue No. 51, 22 Dec, 2001

Impact of Increase in Oil Prices on Inflation and Output in India

Vol. 36, Issue No. 51, 22 Dec, 2001

Special Articles

Indranil Bhattacharyya, Kaushik Bhattacharya

This paper attempts to study the transmission mechanism of an increase in petroleum prices on the prices of other commodities and output in India. The paper also examines the nature and the extent of 'feedback' in such a transmission mechanism and obtains evidence of bidirectional causality between oil and non-oil inflation in India.

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