Impact of Non-linear Analysis of Crude Oil Prices on Domestic Inflation in Pakistan

Post-COVID-19 outbreaks and the Russian-Ukraine war seriously disturb energy supply chain, which causes massive inflation worldwide. This badly affected developing countries because of poor population living in these countries. study explores different determinants Pakistan by considering global crude oil prices (COP) using annual time series data from 1980 to 2020. measured CPI as dependent variable, while COP was key independent variable controlling exchange rate, GDP, remittances. The empirical results are estimated non-linear ARDL econometric approach. proposes U-shaped relationship with CPI. Furthermore, foreign remittance GDP per capita also contribute domestic inflation. present suggests that government should take steps decrease dependence on imported resources make prosperous.