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On the dynamic price pass-through effect of commodities to CPI constituents

Author

Listed:
  • Gökhan Cebiroğlu

    (Vattenfall Energy Trading GmbH)

  • Kujtim Avdiu

    (OeNB)

  • Stephan Unger

    (Saint Anselm College)

Abstract

This paper analyzes the price pass-through effect of the most heavily traded commodities to CPI constituents. We investigate the differences between US, EU, and China CPI constituent dependency on commodity prices, and analyze the dynamics of the price pass-through effect. Our major finding is that due to globalization the US exhibits a high degree of de-industrialization indicated by a breakdown of the commodity price pass-through effect, while European and Chinese consumer prices exhibit a significant exposure to commodity price fluctuations.

Suggested Citation

  • Gökhan Cebiroğlu & Kujtim Avdiu & Stephan Unger, 2022. "On the dynamic price pass-through effect of commodities to CPI constituents," SN Business & Economics, Springer, vol. 2(3), pages 1-12, March.
    • Handle: RePEc:spr:snbeco:v:2:y:2022:i:3:d:10.1007_s43546-021-00192-0
    DOI: 10.1007/s43546-021-00192-0
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    References listed on IDEAS

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