Question

why does oil price fluctuations proportionally affect inflation of developed countries more relative to inflation in developing countries

Answer 1

As the price of oil increases then it directly affect the prices of goods made with petroleum products.

As the oil prices increases then input cost increases so final product cost will also increases then inflation occur.

Oil fluctuations affect inflation of develops countries more because the deveoped countries produced more goods which is made with petroleum products and one thing is that developed countries export more than import so if the input price increases then final product price also increases and when export that product in any country then import duty or tariff is also imposed on that product so price of that product will be very high and if the price increases then demand decreases and overall economic growth decrease.