Economies like India more vulnerable to big oil price moves

New Delhi: Given weak consumer demand, higher oil prices can result in stagflation in an emerging economy like India, which imports more than 70 per cent of its oil needs, says a report.

In economic parlance, stagflation means a situation in a country's economy when inflation is persistently high, demand is stagnant and unemployment rates are high.

According to the Japanese financial services major Nomura, when the rise in oil prices is driven more by supply-side factors – as is the case currently – it tends to be more damaging to large net oil importers.