Determinants of Producer Price versus Consumer price inflation in emerging Asia

Jongwanich, Juthathip; Park, Donghyun; Wongcharoen, Petchtharin

doi:10.1080/13547860.2019.1574251

Cited by 9 publications

(9 citation statements)

References 26 publications

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“…Movements in oil prices can change production costs, so higher oil prices may lead to an increase in production costs and a consequent decrease in production markets (He and Lin, 2019), which in turn may increase consumer/producer price levels. However, the inconsistent responses of the CPI/MCPI and the PPI/MPPI occurred because of the differences in dependence on oil between consumers and producers (Sakashita and Yoshizaki, 2016;Jongwanich et al, 2019). As a rule of thumb, we could conclude that producer prices were more sensitive than consumer prices to changes in oil prices.…”

Section: Oil Price Pass-through Without a Monetary Policy In Chinamentioning

confidence: 83%

Oil Price Pass-Through Into Consumer and Producer Prices With Monetary Policy in China: Are There Non-linear and Mediating Effects

2020

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Balancing the oil pass-through to consumer and producer prices is crucial for policymakers. This study aimed to advance associated thinking by examining how consumer and producer prices in China related to changes in global oil prices from 2006 to 2018. First, we investigated the pass-through of oil spot prices to consumer prices as indicated by the consumer price index (CPI) and means of consumption price index (MCPI), and to producer prices as indicated by the producer price index (PPI) and means of production price index (MPPI), with a monetary policy in China. This study also explored the non-linear and mediating effects of financial markets and government debt on linkages between oil prices and consumer/producer prices based on non-linear framework and causal steps approach, respectively. Our findings indicated some key points; for example, the pass-through of oil prices with a monetary policy in China shed light on a benchmark role in global oil markets. Additionally, the non-linear effect of oil prices on consumer/producer prices varied across the Brent and West Texas Intermediate (WTI) crude oil markets. The mediating effect of government debt also reflected the effectiveness in balancing the relationship between oil prices and producer prices. Government debt explained the −0.091 transition between the Brent oil price and the PPI and could explain the −0.095 transition between the Brent oil price and the MPPI, whereas the transition due to financial markets were −0.064 and −0.080, respectively. These outcomes have important implications for stabilizing price levels in countries.

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Section: Oil Price Pass-through Without a Monetary Policy In Chinamentioning

confidence: 83%

Oil Price Pass-Through Into Consumer and Producer Prices With Monetary Policy in China: Are There Non-linear and Mediating Effects

2020

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“…Considering the sub-items of consumer prices and producer prices, studies (Abdioğlu & Korkmaz, Anggraeni & Irawan, 2018;Jongwanich et al, 2019;Koçak, 2021;Öner, 2018) examining the relationship between them and contributing to the literature were also encountered. Abdioğlu and Korkmaz (2012), investigated the relations between the relevant sectors in terms of price pass-through by determining the sub-sectors in which CPI and PPI contain almost the same mutually, as well as their general levels for Turkey.…”

Section: Review Of the Theoretical Framework And Literaturementioning

confidence: 99%

“…Anggraeni and Irawan (2018) found a one-way causality relationship from PPI to CPI in general and from CPI inflation to PPI inflation in the clothing group for Indonesia. Jongwanich, et al (2019), was found that in countries where oil use is intense, government intervention is limited in energy and energy-related sectors, and energy efficiency is low, the degree of reflection of oil prices on consumer prices is higher; exchange rate passthrough to producer prices is higher than consumer prices; and again, it was concluded that the pass across of the exchange rate to consumer prices is more than that of producer prices.…”

Section: Review Of the Theoretical Framework And Literaturementioning

confidence: 99%

Kırılgan Beşli Ülkelerde Tüketici ve Üretici Fiyatları Arasındaki Aktarım Mekanizması: Eşik Eşbütünleşme ve Hata Düzeltme

MERT

2023

Hacettepe Üniversitesi İktisadi Ve İdari Bilimler Fakültesi Dergisi

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This study focuses on examining the interrelationship between consumer and producer prices within the framework of the fragile five within the scope of asymmetric models. Considering the 2010:M1-2021:M8 period, TAR and M-TAR cointegration and error correction models were used in the study. The results of the analysis indicated that there was no asymmetrical relationship between CPI and PPI for Brazil and India, while it pointed to an asymmetric long-term relationship for South Africa, Indonesia, and Turkey. According to the asymmetric error correction estimation results, while no long-term asymmetric causality relationship could be found for Indonesia, South Africa and Turkey, it was determined for the short-term. According to this, there is a causal relationship from PPI to CPI for Indonesia, from CPI to PPI for South Africa, and bidirectional causality for Turkey. The differences in the transmission mechanism between the price indices of the fragile five countries reveal the differences in the internal dynamics of the countries.

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“…Penelitian sebelumnya menemukan bahwa perilaku pembelian konsumen dipengaruhi oleh informasi harga (McCall & Bruneau, 2010). Dalam riset ilmu ekonomi, harga dianggap sebagai faktor penting yang menentukan ekspektasi konsumen dan karenanya terdapat evaluasi pembelian oleh konsumen (Jongwanich, Park, & Wongcharoen, 2019). Joung, Choi, & Wang (2016) menyatakan bahwa harga adalah faktor penting dalam pembentukan evaluasi konsumen terhadap kualitas produk selama pengalaman bersantap mereka.…”

Section: Pendahuluanunclassified

Atribut Pemilihan Kualitas Restoran: Citra Merek Dan Harga

2019

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This research examines the impact of brand image and price on the preferences attributes of restaurants (service quality, food quality and atmosphere). Structural Equation Model (SEM) applied using 169 respondents as tourist and AMOS application tests the hypothesis. Results show that restaurant attribute preferences positively influenced by the brand image and price. Brand image does not affect significantly all restaurant quality attributes (service quality). Service quality does have a positive relationship to the brand image built by a restaurant, but not necessarily the level of service as desired by consumers, where consumers have different characters and perceptions in terms of being served. These studies also reveal that customer service or restaurant waiters attract new customers and maintain existing customers by improving their restaurant's food quality, service quality, and atmosphere.

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Determinants of Producer Price versus Consumer price inflation in emerging Asia

Cited by 9 publications

References 26 publications

Oil Price Pass-Through Into Consumer and Producer Prices With Monetary Policy in China: Are There Non-linear and Mediating Effects

Oil Price Pass-Through Into Consumer and Producer Prices With Monetary Policy in China: Are There Non-linear and Mediating Effects

Kırılgan Beşli Ülkelerde Tüketici ve Üretici Fiyatları Arasındaki Aktarım Mekanizması: Eşik Eşbütünleşme ve Hata Düzeltme

Atribut Pemilihan Kualitas Restoran: Citra Merek Dan Harga

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