Examining the effect of oil price pass-through on the domestic prices: asymmetric versus symmetric adjustment modelling
We study the effect of oil price pass-through on the domestic prices, namely on the consumer price index (CPI) and producer price index (PPI), based on the asymmetric adjustment modelling approach. The behaviour of domestic prices in response to oil price changes was examined by comparing two groups...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
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Penerbit Universiti Kebangsaan Malaysia
2020
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| Online Access: | http://journalarticle.ukm.my/15086/ http://journalarticle.ukm.my/15086/1/jqma-16-1-paper1.pdf |
| _version_ | 1848813712652107776 |
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| author | Koh, Yan Chyi Lim, Wei Hong Sek, Siok Kun |
| author_facet | Koh, Yan Chyi Lim, Wei Hong Sek, Siok Kun |
| author_sort | Koh, Yan Chyi |
| building | UKM Institutional Repository |
| collection | Online Access |
| description | We study the effect of oil price pass-through on the domestic prices, namely on the consumer price index (CPI) and producer price index (PPI), based on the asymmetric adjustment modelling approach. The behaviour of domestic prices in response to oil price changes was examined by comparing two groups of economies, namely the oil-importing versus oil-exporting countries. The results show that although the oil price has a significant influence on the domestic price inflation in the short-run and in the long-run for most of the oil-importers and oil-exporters, it is not the main factor affecting CPI and PPI inflation. Moreover, oil price inflation seems to trigger a higher impact on PPI inflation than CPI inflation. The pass-through of oil prices on CPI inflation is low, especially in the oil-importing countries while the main determinant of CPI and PPI inflation is gross domestic product (GDP). The results are found to hold for both groups of countries. |
| first_indexed | 2025-11-15T00:22:33Z |
| format | Article |
| id | oai:generic.eprints.org:15086 |
| institution | Universiti Kebangasaan Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T00:22:33Z |
| publishDate | 2020 |
| publisher | Penerbit Universiti Kebangsaan Malaysia |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | oai:generic.eprints.org:150862020-08-25T00:41:28Z http://journalarticle.ukm.my/15086/ Examining the effect of oil price pass-through on the domestic prices: asymmetric versus symmetric adjustment modelling Koh, Yan Chyi Lim, Wei Hong Sek, Siok Kun We study the effect of oil price pass-through on the domestic prices, namely on the consumer price index (CPI) and producer price index (PPI), based on the asymmetric adjustment modelling approach. The behaviour of domestic prices in response to oil price changes was examined by comparing two groups of economies, namely the oil-importing versus oil-exporting countries. The results show that although the oil price has a significant influence on the domestic price inflation in the short-run and in the long-run for most of the oil-importers and oil-exporters, it is not the main factor affecting CPI and PPI inflation. Moreover, oil price inflation seems to trigger a higher impact on PPI inflation than CPI inflation. The pass-through of oil prices on CPI inflation is low, especially in the oil-importing countries while the main determinant of CPI and PPI inflation is gross domestic product (GDP). The results are found to hold for both groups of countries. Penerbit Universiti Kebangsaan Malaysia 2020 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/15086/1/jqma-16-1-paper1.pdf Koh, Yan Chyi and Lim, Wei Hong and Sek, Siok Kun (2020) Examining the effect of oil price pass-through on the domestic prices: asymmetric versus symmetric adjustment modelling. Journal of Quality Measurement and Analysis, 16 (1). pp. 1-15. ISSN 1823-5670 http://www.ukm.my/jqma/current.html |
| spellingShingle | Koh, Yan Chyi Lim, Wei Hong Sek, Siok Kun Examining the effect of oil price pass-through on the domestic prices: asymmetric versus symmetric adjustment modelling |
| title | Examining the effect of oil price pass-through on the domestic prices: asymmetric versus symmetric adjustment modelling |
| title_full | Examining the effect of oil price pass-through on the domestic prices: asymmetric versus symmetric adjustment modelling |
| title_fullStr | Examining the effect of oil price pass-through on the domestic prices: asymmetric versus symmetric adjustment modelling |
| title_full_unstemmed | Examining the effect of oil price pass-through on the domestic prices: asymmetric versus symmetric adjustment modelling |
| title_short | Examining the effect of oil price pass-through on the domestic prices: asymmetric versus symmetric adjustment modelling |
| title_sort | examining the effect of oil price pass-through on the domestic prices: asymmetric versus symmetric adjustment modelling |
| url | http://journalarticle.ukm.my/15086/ http://journalarticle.ukm.my/15086/ http://journalarticle.ukm.my/15086/1/jqma-16-1-paper1.pdf |