Session 15: Macroeconomics and Prices
Moderator:
Matteo Lanzafame



Commodity Prices and Inflation in Asia 

This paper investigates the role played by commodity prices as a determinant of inflation dynamics in Asia. Relying on quarterly data for 21 economies, we estimate the passthrough from changes in world fuel and food prices to consumer inflation in Asia using vector autoregression techniques. Preliminary evidence indicates that there is significant heterogeneity between economies. The cumulative impact of a food-price shock over four quarters is on average 0.2, but ranges between 0.0 and 0.6 across countries. The corresponding range for the fuel price passthrough is between 0.0 and 0.7, with an average value of 0.1.

Author/s:

Matteo Lanzafame, Irfan A. Qureshi, Arief Ramayandi, Rene Cris Rivera, and Michael Timbang


JEL codes: E31, F41, E50, E52, E60