Commodity Prices and Domestic Inflation in India
Ajit R. Joshi and
Debashis Acharya ()
Additional contact information
Ajit R. Joshi: Ajit R. Joshi, Research Scholar, Indian Institute of Technology Madras, Chennai, India. E-mail: email@example.com
Global Journal of Emerging Market Economies, 2011, vol. 3, issue 2, 223-246
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)
References: Add references at CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
Journal Article: Commodity Prices and Domestic Inflation in India (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:sae:emeeco:v:3:y:2011:i:2:p:223-246
Access Statistics for this article
More articles in Global Journal of Emerging Market Economies from Emerging Markets Forum
Bibliographic data for series maintained by SAGE Publications ().