Assistant Adviser, Department of Statistics and Information Management, Reserve Bank of India, Mumbai, India
Authors are extremely thankful to Prof. Ravindra H. Dholakia for his valuable suggestions. The views expressed in this paper are personal of the authors and are not reflections of the Organisation to which authors belong
This paper explores the pass-through from international commodity prices to India's domestic price. For this, commodities/group of commodities that have major share in India's import basket have been selected. Based on econometric analysis, the pass-through from international price to domestic price has been estimated. Further, an index of international commodity price based on the selected commodities has been constructed. Empirical analysis suggests that the pass-through from the constructed price index to India's domestic price is stronger than the usual international commodity price indices.
Pass through, Imported inflation
