Inflation Expectations went right!
Interestingly in my MSc. essay, I had observed that the direct impact of oil prices are negative on CPI but positive on WPI.
Posts
How dynamic are fuel prices?
Petrol prices were market-linked in 2010 and diesel later in 2014 for retail consumers. Although I do encourage and support this move as they would improve fiscal balance, make energy usage more sufficient and would be better for the environment as well.
Impact of Diesel Price Deregulation on asymmetricity of Exchange rate Pass-through to inflation
India is a net importer of energy, with High-Speed-Diesel playing a central role in India’s energy dynamics. Due to this, diesel prices were passed in a controlled manner and distributed asymmetrically between favourable and unfavourable shocks.