Computing the relative price divergence as a measure of inflation pressure in Peru
Por Ramos, Maria Gracia; Winkelried, Diego
April 2016
Idioma: Spanish
Keywords
- common trends
- convergence cluster
- inflation
Clasificación JEL:
- C22
- E31
Resumen:
This papers aims at analyzing the price divergence in Peru by using a non-linear model with time-varying coefficients (see Phillips and Sul, 2007) and identifying common trends in prices among some groupings in the basic consumer’s basket, as well as in-side the main CPI components. A significant price divergence with persistent upward trends in the most important core inflation items could signal the existence of real relative demand and supply shocks.