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Auge y caída de precios de commodities y su impacto sobre precios domésticos: Comparación internacional

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  • Alfredo Pistelli
  • Víctor Riquelme

Abstract

This paper compares domestic food, energy and core inflation in a sample of 44 countries during the recent commodities price boom-and-bust cycle, and explains differences across countries. In particular, it explores the role of structural and cyclical factors in explaining cross-country differences. Structural factors are essential in explaining cross-country differences in food and energy inflation. Differences in both price levels and domestic price regulations are key and significant. About half of the difference between the increase in domestic food prices in Chile from 2007 to 2008, and the average food inflation for the whole sample of countries, was explained by these factors. Even though the unexplained component of food and energy inflation in Chile is positive and greater than that of other countries during the boom, actual core inflation was less than expected inflation using the model. This is evidence contrary to the de-anchoring of inflation expectations hypothesis.

Suggested Citation

  • Alfredo Pistelli & Víctor Riquelme, 2010. "Auge y caída de precios de commodities y su impacto sobre precios domésticos: Comparación internacional," Working Papers Central Bank of Chile 567, Central Bank of Chile.
  • Handle: RePEc:chb:bcchwp:567
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    References listed on IDEAS

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    Cited by:

    1. José de Gregorio, 2012. "Commodity Prices, Monetary Policy and Inflation," Working Papers wp359, University of Chile, Department of Economics.
    2. Marcus Cobb, 2012. "Evolución de Precios según Nivel de Ingresos," Notas de Investigación Journal Economía Chilena (The Chilean Economy), Central Bank of Chile, vol. 15(3), pages 96-106, December.
    3. Michael Pedersen, 2015. "Propagation of Shocks to Food and Energy Prices: A Cross-Country Analysis," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 65(4), pages 272-289, August.

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