Description

I use a unique micro price data to estimate the pass ‐ through from commodity prices to retail prices in several countries. The paper presents and deve lops a simple methodology to estimate the pass ‐ through from the prices of different commodities into various sectors across several countries. This is the first exer cise of this type. As expected, countries respond differently to the different shocks; an d sectors respond differe ntly across countries and commodities. A third of all the explained vari ation is driven by sectoral characteristics, which is a dimension mostly disregarded by the literature.