A recent study by Bank of Baroda, authored by economist Dipanwita Mazumdar, highlights the differing impacts of international crude oil prices on wholesale and retail inflation in India. The research indicates that while oil price shocks are clearly reflected in wholesale prices, particularly in the Wholesale Price Index (WPI), their effect on retail prices, represented by the Consumer Price Index (CPI), is minimal. This discrepancy arises because the CPI has a lower weightage for fuel components compared to the WPI. The study analyzed monthly inflation and oil price data from January 1991 to March 2026, revealing a positive correlation between Brent crude prices and wholesale inflation, particularly during volatile periods. For instance, during the decade from 2006 to 2016, the correlation reached 0.69, indicating a strong relationship. However, over the long term, this correlation diminished significantly, with coefficients of 0.05 for WPI-Fuel and -0.02 for WPI overall. The report also found that oil prices significantly influence GDP, with changes in oil explaining 70% of GDP variation. Notably, crude prices have surged by over 20% in 18 out of 54 years, including a recent increase of 39.7% from February 27 to May 6, 2023, amid geopolitical tensions in West Asia. The study concludes that oil price shocks are often self-limiting and concentrated in specific periods, with an average peak lasting six to seven months.