An Empirical Model of International and Domestic Food Inflation

Abstract

En empirical model of the pass-through of international to domestic food inflation is proposed. The key liking variable between international and domestic food inflation of food products in the PPI for food imports and exports. Not only the inflation rates of the relevant countries but also their exchange rates can exert important influences on the prices of imported and exported food products.Food inflation, International food inflation. Classification JEL: E17.