Fossil-fuel related items — transport and household energy — contributed about 20 per cent to India’s annual rate of inflation between April and May 2022, said a report by Cambridge Econometrics.
At that time, India’s annual inflation rate (CPI) was between seven and eight per cent.
The report highlights that between January 2021 and August 2022, fuel and power prices rose nearly five times faster (57 per cent) than overall consumer prices in India (12 per cent). This was reflected in consumer spending.
Households in the Delhi region, for instance, are estimated to have spent 25 per cent more on fuels and electricity in 2022 than in the previous year, and nearly 50 per cent more — around Rs 4,100 than in 2020.
