Exchange rate pass-through
Exchange rate pass-through latest publications
Consumer prices increased by 0.86% mom in August, far below the consensus and ours (1.3% Bloomberg vs. 1.4% BBVA Research). Annual inflation decreased from 16.65% in July to 15%, the lowest level in the last 15 months. We maintain our year-end forecast of 15% with downside risks.
Consumer prices increased 1.62% (mom) in May, slightly higher than BBVA Research & Consensus estimate of 1.45%. Annual consumer inflation jumped to 12.15% from 10.85% on a broad-based worsening. We expect a limited hike (around 50bps) in the next CBRT meeting on June, 7 to strengthen its recent policy decisions and enhance …
January 31, 2011
Effects of a Free Trade Agreement on the Exchange Rate Pass-Through to Import Prices
This paper investigates the effect of trade liberalization on the exchange rate pass-through to import prices. It employs an empirical estimation of NAFTA, and uses a Ricardian equilibrium model