IMPACT OF CRUDE OIL PRICE FLUCTUATION ON INFLATION IN INDIA

Authors

  • Hera Asif Khan M.A., Dept. of Economics, Aligarh Muslim University, Aligarh, Uttar Pradesh, India
  • Amina Irshad, M.A., Dept. of Economics, Aligarh Muslim University, Aligarh, Uttar Pradesh, India
  • Saleemur Rahman M.A., Dept. of Economics, Aligarh Muslim University, Aligarh, Uttar Pradesh, India

DOI:

https://doi.org/10.2583/

Keywords:

Crude Oil, ARDL Model

Abstract

Crude oil has many important roles to play in the Indian Economy. Its requirement is increasing rapidly in India because it is not only used for fuel but also for making plastics, fiber clothes, medicines etc. India is the third-largest country of Crude oil imports. Whenever the import of crude oil gets disturbed because of oil price fluctuation it harms the balance of payment. So, the main aim of this paper is to show the impact of crude oil price fluctuation on inflation. Whenever the price of crude oil fluctuates it has many indirect effects on Indian Economy but its direct effect is on inflation which plays an important role in economic development. This study has been conducted using time series data from 1995 to 2018. The analysis shows that there is a positive relationship between crude oil price fluctuation and inflation for which I have used the ARDL model. 

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Published

2023-01-01

Issue

2022: Volume-1 | Issue-2 [July to December]

Section

Review Article

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