Cost-push impact of motor spirit price on price indices and inflation

Nooraddin Sharify () and Manuel Alejandro Cardenete
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Nooraddin Sharify: Department of Economics, University of Mazandaran, Babolsar, Iran.

No 07.11, Working Papers from Universidad Pablo de Olavide, Department of Economics

Abstract: Any increment in the prices of goods or services generally leads to an increase in different products prices indices and inflation. This paper examines the cost-push impact of a motor spirit price increment in Iran on different products prices indices and inflation. An Input-Output (I-O) table adjustment approach is applied. Iran input- output table for the year 2001-2002 is used as database. The empirical results of the model show how the cost-push impact of a 25% increment in the motor spirit price leads to an increment in different products prices indices, but the maximum effect of this increment, which is on transportation services prices, does not exceed 0.7492%. In addition, the cost-push effect of this increase on the Production Prices Index (PPI) is estimated at 0.2540%.

Keywords: Input-Output; Motor Spirit Pricing; Price model; Iran. (search for similar items in EconPapers)
JEL-codes: C67 D57 E37 E64 (search for similar items in EconPapers)
Pages: 13 pages
Date: 2007-05
New Economics Papers: this item is included in nep-mac and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:pab:wpaper:07.11

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