EconPapers    
Economics at your fingertips  
 

Exchange Rate Pass-Through to Consumer Prices in South Africa: Evidence from Micro-Data

Janine Aron (), Kenneth Creamer (), John Muellbauer () and Neil Rankin ()

No 9735, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: A sizeable literature examines exchange rate pass-through to disaggregated import prices but very few micro-studies focus on consumer prices. This paper explores exchange rate pass-through to consumer prices in South Africa during 2002-2007, using a unique data set of highly disaggregated data at the product and outlet level. The paper adopts an empirical approach that allows pass-through to be calculated over various horizons, including controls for domestic and foreign costs. It studies how pass-through differs across types of consumption goods and services and draws some aggregate implications about pass-through, using actual weights from the CPI basket. The heterogeneity of pass-through for different food sub-components and the role of switches between import and export parity pricing of maize is investigated and found significant for five out of ten food sub-components. Overall pass-through to the almost 63 percent of the CPI covered is estimated at about 30 percent after two years, but is higher for food.

Keywords: consumer prices; CPI; exchange rate pass-through; exchange rate volatility; food prices; goods prices; monetary policy; services prices (search for similar items in EconPapers)
JEL-codes: C23 C51 C52 E3 E31 E52 E58 F31 F39 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr, nep-int, nep-mac and nep-opm
Date: 2013-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=9735 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Exchange Rate Pass-Through to Consumer Prices in South Africa: Evidence from Micro-Data (2014) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:9735

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=9735

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2019-08-20
Handle: RePEc:cpr:ceprdp:9735