Name: Neelam Ansari & Rohini A. Kelkar
Country: India

Year: 2025
Volume: Volume-12, Issue-1 (January-June)
Page Number: 161-168
DOI: https://doi.org/10.5281/zenodo.16875148

ABSTRACT:
Energy Consumer Price Inflation plays a vital role in determining the overall cost of living
and production expenses within an economy. This study aims to compare the trends of energy
consumer price inflation in India and China from 2010 to 2022. Both countries, being large
emerging economies, experience significant impacts from fluctuations in global energy
prices. India, heavily reliant on energy imports, faces inflationary volatility due to global
crude oil price shocks, changes in taxation, and deregulation policies. Meanwhile, China,
with a stronger control over its energy pricing mechanisms and a diversified energy portfolio,
displays relatively stable inflation trends. These differences are crucial to understanding how
each nation responds to internal and external economic pressures. The study employs
statistical tools to identify inflation trends, test for correlations, and examine differences in
mean energy inflation rates over time. The analysis reveals that although there is a moderate
correlation between the energy inflation trends of India and China, the relationship is not
statistically significant. However, a significant difference in average inflation rates is
observed, with India recording much higher and more volatile energy inflation than China.
These insights offer valuable implications for policymakers in both nations aiming to
maintain economic stability while ensuring energy affordability amid global uncertainty.
Keywords: Energy consumer Inflation, India, China, Monetary Policy.