IDEAS home Printed from https://ideas.repec.org/a/oup/wbecrv/v39y2025i3p522-552..html

International Commodity Prices Transmission to Consumer Prices in Africa

Author

Listed:
  • Thibault Lemaire
  • Paul Vertier

Abstract

In this paper, global commodity prices pass-through to consumer prices are estimated in Africa. The estimation sample includes monthly data for 48 countries over the period 2002m02-2021m04. Sixteen commodity prices are considered separately, rather than aggregate indices that use weights unrepresentative of consumption in Africa. Using local projections in a panel data set, the maximum estimated pass-through is of 23 percent, and the long-run pass-through is of about 20 percent, higher than usually found in the literature. Country-specific regressions are also considered: in the latter, the estimated pass-through is lower for countries with a higher GDP per capita, a lower share of food and energy in the consumption basket, a better quality of transport infrastructure, and a higher openness to trade. Finally, commodity-specific pass-throughs are correlated with the share of corresponding goods in the consumer basket and with the import dependency ratio for this commodity.

Suggested Citation

  • Thibault Lemaire & Paul Vertier, 2025. "International Commodity Prices Transmission to Consumer Prices in Africa," The World Bank Economic Review, World Bank, vol. 39(3), pages 522-552.
    • Handle: RePEc:oup:wbecrv:v:39:y:2025:i:3:p:522-552.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/wber/lhae034
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. is not listed on IDEAS
    2. Camille Fabre & Paul Vertier, 2024. "The Economic Challenges of Biodiversity Loss in Africa and Measures Implemented to Limit It," Working papers 984, Banque de France.

    More about this item

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • F44 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Business Cycles
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • Q02 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Commodity Market

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:wbecrv:v:39:y:2025:i:3:p:522-552.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/wrldbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.