scholarly journals On the dynamic commodity price pass-through effect to CPI constituents

2020 ◽  
Author(s):  
Stephan Unger ◽  
Goekhan Cebiroglu
Keyword(s):  
Commodity Prices ◽  
Commodity Price ◽  
Price Fluctuations ◽  
European Consumer ◽  
Consumer Prices ◽  
The Us ◽  
Pass Through ◽  
High Degree

Abstract This paper analyzes the price pass-through effect of the most heavily traded commodities to CPI constituents. We reveal the differences between EU CPI and US CPI constituent dependency on commodity prices, and investigate the dynamics of the price pass-through effect. Our major finding is that due to globalization the US exhibits a high degree of de-industrialization indicated by a break down of the commodity price pass-through effect, while European consumer prices still exhibit a significant exposure to commodity price fluctuations.

scholarly journals Commodity price pass-through along the pricing chain

2021 ◽  
Author(s):  
Rebeca Jiménez-Rodríguez ◽  
Amalia Morales-Zumaquero
Keyword(s):  
Emerging Economies ◽  
Raw Materials ◽  
Commodity Prices ◽  
Commodity Price ◽  
Emerging Countries ◽  
Consumer Prices ◽  
Advanced Economies ◽  
The World ◽  
Producer Prices ◽  
Pass Through

AbstractThis paper analyses the commodity price pass-through along the pricing chain for the global commodity price index and the indices of its main categories (i.e., agricultural raw materials, food and beverages, energy and metals) in the world, advanced and emerging economies. To do so, the study considers country-by-country vector autoregression models and pool the results by taking weighted means for 18 advanced economies and 19 emerging countries, as well as for the world (defined as the sum of advanced and emerging economies). The results show the following: (i) there is evidence in favour of partial pass-through from commodity prices to producer prices, although the evidence for the pass-through to consumer prices is less evident; (ii) the pass-through in the world seems to be led by both advanced and emerging countries for producer prices and only by advanced economies for consumer prices; (iii) higher prices in the four categories (agricultural raw materials only in the short-run) induce significant higher producer prices in almost all cases, with shocks in the prices of energy and metals showing the largest effects; and (iv) energy prices explain the highest variability of producer and consumer prices.

Global Food Commodity Prices and Domestic Food Inflation: Some Insights from Morocco

New Medit ◽  
2020 ◽  
Vol 19 (3) ◽  
Author(s):  
Ahmed EL GHIN ◽  
Mounir EL-KARIMI
Keyword(s):  
Exchange Rate Regime ◽  
Commodity Prices ◽  
Food Prices ◽  
Consumer Prices ◽  
Floating Exchange Rate ◽  
Pass Through ◽  
The Impact ◽  
Food Inflation ◽  
Global Food ◽  
Domestic Food

This paper examines the world commodity prices pass-through to food inflation in Morocco, over the period 2004-2018, by using Structural Vector Autoregression (SVAR) model on monthly data. Several interesting results are found from this study. First, the impact of global food prices on domestic food inflation is shown significant, which reflects the large imported component in the domestic food consumption basket. Second, the transmission effect is found to vary across commodities. Consumer prices of cereals and oils significantly and positively respond to external price shocks, while those of dairy and beverages are weakly influenced. Third, there is evidence of asymmetries in the pass-through from world to domestic food prices, where external positive shocks generate a stronger local prices response than negative ones. This situation is indicative of policy and market distortions, namely the subsidies, price controls, and weak competitive market structures. Our findings suggest that food price movements should require much attention in monetary policymaking, especially that the country has taken preliminary steps towards the adoption of floating exchange rate regime.

Changes in Import Pricing Behaviour: Evidence for Germany

2011 ◽  
Vol 231 (4) ◽  
Author(s):  
Kerstin Stahn
Keyword(s):  
Import Price ◽  
Commodity Prices ◽  
Pricing To Market ◽  
Product Categories ◽  
Individual Product ◽  
Long Run ◽  
Consumer Prices ◽  
Pass Through ◽  
The Individual ◽  
The Impact

SummarySince changes in import prices feed into consumer prices and thus might affect monetary policy decisions, policymakers need to establish whether or not German importers’ long-run pricing behaviour has changed. Of particular interest are any shifts in the importance of cost pass-through and pricing-to-market for import pricing in Germany that may have ocurred since the 1990s. We analyse pricing in single equations for 11 product categories because the factors influencing the pricing behaviour, eg competitive pressure,may well have developed differently on the individual product markets. The Saikkonen (1991) approach is applied to test the import price levels for changes in the impact of their determinants. After aggregating the findings for the individual product categories, we find that, on the whole, pricing-to-market has increased, whereas cost pass-through via foreign costs and exchange rates is lower, but not via commodity prices.

Commodity price pass-through in the US airline industry and the hidden perks of consolidation

2021 ◽  
Vol 95 ◽  
pp. 102100
Author(s):  
Alexander H. Wolter ◽  
Thorsten Ehlers ◽  
Klaus Luetjens ◽  
Volker Gollnick
Keyword(s):  
Airline Industry ◽  
Commodity Price ◽  
The Us ◽  
Pass Through

scholarly journals The Transmission of Global Commodity Prices to Consumer Prices in a Commodity Import-Dependent Country: Evidence from Morocco

2020 ◽  
Vol 67 (1) ◽  
pp. 15-32
Author(s):  
Mounir El-Karimi ◽  
El-Ghini Ahmed
Keyword(s):  
Commodity Prices ◽  
Oil Prices ◽  
Commodity Price ◽  
Food Prices ◽  
Food Price ◽  
Oil Price ◽  
Causality Test ◽  
Consumer Prices ◽  
Short Run ◽  
The Impact

This paper uses the Breitung and Candelon (2006) causality test to examine the effect of global oil and food price changes on the inflation in Morocco over the period from 1998Q1 to 2018Q1. The results show significant transmission from oil and food prices to domestic inflation. Specifically, the food prices are shown more important than oil prices in explaining inflation in the short-run, which reflects the high weight of food in the consumption basket. However, the effect of oil prices on inflation is much more persistent than the effect of food prices. Furthermore, the impact of commodity price shocks on inflation exhibits asymmetries. The oil price hikes affect more weakly the inflation than oil price decreases, whereas the food price increases are more transmitted to inflation than food price decreases. Our findings may provide useful information to researchers and policymakers in formulating more appropriate monetary policy.

scholarly journals Food and Energy Price Shocks: What Other Prices Are Affected?

2011 ◽  
pp. 1-6
Author(s):  
Todd E. Clark ◽  
Saeed Zaman
Keyword(s):  
Commodity Prices ◽  
Commodity Price ◽  
Energy Price ◽  
Price Shocks ◽  
Price Increases ◽  
Consumer Prices ◽  
Commodity Price Shocks

Sharp rises in energy and other commodity prices have recently ignited concerns about inflation. Will these price increases spill over to other prices more generally? We study the typical responses of different price shocks and assess whether the recent behavior of producer and consumer prices is consistent with historical norms. Our analysis shows that the behavior of various producer and consumer prices since late 2009 has generally matched up with historical patterns. Overall, our findings suggest that effects of the recent energy and commodity price shocks on core consumer prices will be modest going forward.

scholarly journals Rising Global Inflation and Consumer Prices in the People's Republic of China

2021 ◽  
Author(s):  
Keyword(s):  
Commodity Prices ◽  
Commodity Price ◽  
Inflation Expectations ◽  
People's Republic Of China ◽  
Price Shocks ◽  
Price Inflation ◽  
Republic Of China ◽  
Transmission Channels ◽  
Consumer Prices ◽  
Commodity Price Shocks

Although global inflation and commodity prices are on the rise, spillovers to consumer price inflation in the People’s Republic of China (PRC) are expected to be limited. Consumer price inflation in the PRC has been driven mainly by domestic factors during the past decade, while commodity price shocks that led to higher producer costs hardly affected consumer prices. Reasons for these developments include a consumer basket of domestic products, anchored inflation expectations, and system buffers to absorb commodity price shocks. Though contagion risks of higher global inflation and commodity prices to inflation seem limited, possible transmission channels include further rising commodity prices and a shift in inflation expectations in the PRC. This note aims at providing policy recommendations on minimizing inflation transmission channels and containing inflationary expectations.

scholarly journals Commodity Price Changes and Domestic Inflation in the CEMAC Zone: Evidence from Panel Cointegration

2021 ◽  
Vol 13 (5) ◽  
pp. 93
Author(s):  
Njoupouognigni Moussa ◽  
Ndambendia Houdou
Keyword(s):  
Food Policy ◽  
Consumer Price Index ◽  
Commodity Prices ◽  
Panel Cointegration ◽  
Commodity Price ◽  
Food Prices ◽  
Price Changes ◽  
Long Run ◽  
Pass Through ◽  
Domestic Inflation

In this study, we highlight the issue of the recent rise of food prices and other commodities on domestic inflation in the CEMAC zone. Results show that there is a long-run relationship between consumer price index, commodity prices and traditional determinants of inflation. Indeed, an appreciation of the nominal effective exchange rate and a rise of interest rate reduce domestic inflation while excessive money supply and a surge of commodity prices are potential sources of inflation in the region. Moreover, Pass-through from commodity price changes to domestic inflation in the region is incomplete because of the CFA Franc peg to Euro. An efficient use of the tools of monetary policy and a coordinated food policy on crops are more likely to reduce inflationary pressures in the region.

Russian Banking System under Conditions of Global Crisis

2009 ◽  
pp. 4-14 ◽  
Author(s):  
G. Gref ◽  
K. Yudaeva
Keyword(s):  
Banking System ◽  
Commodity Prices ◽  
Financial Sector ◽  
Banking Crises ◽  
Economic Recovery ◽  
Balance Sheets ◽  
Current Economic Crisis ◽  
Risk Appetite ◽  
The Us ◽  
The Face

Problems in the financial sector were at the core of the current economic crisis. Therefore, economic recovery will only become sustainable after taking care of the major weaknesses in the financial sector. This conclusion is relevant both for the US and UK - the two countries where crisis has started, and for other economies which financial institutions turned out to be fragile in the face of the swings in the risk appetite. Russia is one of the countries where the crisis has revealed serious deficiency in the financial sector. Our study of 11 banking crises during the last 25-30 years shows that sustainable economic recovery and decrease in the dependence on commodity prices will be virtually impossible without cleaning of balance sheets and capitalization of the financial sector.

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