Determinants of Consumer Price Inflation versus Producer Price Inflation in Asia

Juthathip Jongwanich, Petchtharin Wongcharoen () and Donghyun Park
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Petchtharin Wongcharoen: Thammasat University

No 491, ADB Economics Working Paper Series from Asian Development Bank

Abstract: We empirically examine and compare the determinants of producer and consumer price inflation in 10 Asian economies during 2000–2015. In this connection, we also investigate the pass-through of global oil prices, global food prices, and exchange rates to domestic producer and consumer prices. Overall, we find that cost-push factors such as oil and food prices are more important in explaining producer price inflation than consumer price inflation in the 10 Asian economies. On the other hand, for consumer prices, demand-pull factors still explain much of the inflation. Finally, we find that the pass-through of global oil prices, global food prices, and exchange rates tend to be higher for producer prices than consumer prices in Asia.

Keywords: Asia; commodity price shocks; consumer price; exchange rate; inflation; monetary policy; pass-through; producer price (search for similar items in EconPapers)
JEL-codes: E31 F43 O53 (search for similar items in EconPapers)
Pages: 38 pages
Date: 2016-07-14
New Economics Papers: this item is included in nep-agr, nep-mac, nep-opm and nep-sea
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Persistent link: https://EconPapers.repec.org/RePEc:ris:adbewp:0491

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