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Figure 4C: International inflation in Crude oil and WPI inflation
in crude petroleum (January 2018-December 2021)
250
(per cent) 200 Correlation: 0.98
WPI inflation in crude petroleum (yoy) 100
150
50
0
-50
-100
-100 -50 0 50 100 150 200 250
YoY growth in Crude Indian basket (per cent)
Source: PPAC and OEA, DPIIT
India also imports substantial share its consumption of edible oils. Any change in international
prices of palm oil gets transmitted into domestic prices as their correlation is around 0.9.
(Figure 4D).
Figure 4D: WPI inflation and international inflation in Palm oil
(January 2018 – December 2021)
70.0
60.0 Correlation: 0.9
(per cent) 50.0
40.0
WPI inflation in palm oil (yoy) 30.0
20.0
10.0
0.0
-10.0
-20.0
-40.0 -20.0 0.0 20.0 40.0 60.0 80.0 100.0
YoY growth in international Palm oil price (per cent)
Source: World Bank and OEA, DPIIT
