A 10 per cent increase in global crude oil prices can raise the domestic headline inflation by 0.20 per cent, a paper by RBI staffers released on Wednesday said.
The paper on oil price and inflation nexus in India by Sujata Kundu, Soumasree Tewari and Indranil Bhattacharyya also asked for policy measures to decrease reliance on imported crude through ways such as alternate non-fossil energy usage.
The paper does not represent the views of the central bank.
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