Impact of Exchange Rate and Oil Prices on Inflation in Pakistan


  • Tahira Bano Qasim Assistant Professor, Department of Statistics, The Women University Multan, Pakistan
  • Hina Ali Assistant Professor, Department of Economics, The Women University Multan, Pakistan
  • Alina Baig Scholar, Department of Statistics, The Women University Multan, Pakistan
  • Maria Shams Khakwani Lecturer, Institute of Management Sciences, The Women University Multan, Pakistan



Inflation, Co-Integration, Stationarity, Unit Root


This study investigates the impact of Exchange Rate (Rupees Vs US $) and oil prices (Pak. Petroleum) and on the inflation rate in Pakistan by applying the Co-Integration technique to the monthly data for all the three series ranging from January 2004 to January 2019.  Unit root testing results provide strong statistical evidence for each of the series to be non-stationary at the level and stationary at first difference. Co-integration testing results confirm the existence of Cointegration among the selected time series.  Moreover, the empirical results of the regression of inflation on the exchange rate and oil price also lead to conclude that both the series have a strong statistical significant impact on inflation in Pakistan.


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How to Cite

Qasim, T. B. ., Ali, H., Baig, A. ., & Khakwani, M. S. . (2021). Impact of Exchange Rate and Oil Prices on Inflation in Pakistan . Review of Economics and Development Studies, 7(2), 177-185.