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The Relationship Between Food Production Prices And Inflation In Bulgaria

Author

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  • Lachezar Borisov

    (Higher School of Insurance and Finance)

Abstract

The study aims to find relationships between the total producer price index for food products and the harmonized consumer price index for food products in Bulgaria. The analysis of the relationships aims to reveal the impact of producer prices on the final consumer price of food products, as well as the period in which the strongest relationships are present. The sharp rise in food prices in Bulgaria, the macroeconomic forecasts for the continuation of this trend and their impact on the welfare of citizens make it necessary to analyse various interrelationships that serve the study and forecasting of certain processes in the country. The study concludes that there is a causal relationship between the total producer price index for food products and the harmonized consumer price index for food products in Bulgaria. In contrast to the general case where inflationary processes are transmitted from producer prices to consumer prices with a lag of 5 months, in the case of food products this happens within the same month.

Suggested Citation

  • Lachezar Borisov, 2022. "The Relationship Between Food Production Prices And Inflation In Bulgaria," Economic Archive, D. A. Tsenov Academy of Economics, Svishtov, Bulgaria, issue 1 Year 20, pages 34-43.
    • Handle: RePEc:dat:earchi:y:2022:i:1:p:34-43
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    File URL: http://hdl.handle.net/10610/4619
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    References listed on IDEAS

    as
    1. Irz, Xavier & Niemi, Jyrki & Liu, Xing, 2013. "Determinants of food price inflation in Finland—The role of energy," Energy Policy, Elsevier, vol. 63(C), pages 656-663.
    2. Luca ONORANTE & Gianluigi FERRUCCI & Rebeca JIMÉNEZ-RODRÍGUEZ, 2010. "Food Price Pass-Through in the Euro Area: the Role of Asymmetries and Non-Linearities," EcoMod2010 259600125, EcoMod.
    3. Jungho Baek & Won W. Koo, 2010. "Analyzing Factors Affecting U.S. Food Price Inflation," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 58(3), pages 303-320, September.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Lachezar Borisov, 2022. "Consumer Confidence And Real Economic Growth In The Eurozone," Baltic Journal of Economic Studies, Publishing house "Baltija Publishing", vol. 8(3).

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    More about this item

    Keywords

    producer price index for food products; consumer price index for food products; inflation; forecasting;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E37 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Forecasting and Simulation: Models and Applications

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