EconPapers    
Economics at your fingertips  
 

Commodity Prices and Domestic Inflation in India

Ajit R. Joshi and Debashis Acharya ()
Additional contact information
Ajit R. Joshi: Indian Institute of Technology Madras

Global Journal of Emerging Market Economies, 2011, vol. 3, issue 2, 223-246

Abstract: In this article, the relationship between international prices of primary commodities and domestic inflation in India has been explored empirically for the period 1994 to 2007. For this purpose a commodity price index with international price quotations and domestic WPI weights has been constructed. The empirical results show that cointegration between international and domestic prices has grown stronger in the period since 2000. The co-movement is found at both aggregate indices as also the sub-groups viz. fuel and manufactured products. While carrying out this analysis, it was found that it is necessary to use an appropriate index, in order to capture the country-specific exposure, rather than using the aggregate indices published by international agencies, whose coverage and weights may not represent the risks and exposures of specific countries.

Keywords: Commodity prices; domestic inflation; cointegration (search for similar items in EconPapers)
Date: 2011-12
References: Add references at CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed

Downloads: (external link)
http://eme.sagepub.com/content/3/2/223.abstract File-Restriction Access to full text is restricted to subscribers. (text/html)

Related works:
Journal Article: Commodity Prices and Domestic Inflation in India (2011) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:emf:journl:2011b-4

Ordering information: This journal article can be ordered from
http://eme.sagepub.com

Access Statistics for this article

Global Journal of Emerging Market Economies is currently edited by Michael Whelan

More articles in Global Journal of Emerging Market Economies from Emerging Markets Forum Emerging Markets Forum 2600 Virginia Ave, NW, Ste 201 Washington, DC 20037. Contact information at EDIRC.
Bibliographic data for series maintained by Michael Whelan (). This e-mail address is bad, please contact .

 
Page updated 2020-06-03
Handle: RePEc:emf:journl:2011b-4