Resumen

GONZALEZ, Jorge  y  SAUCEDO, Eduardo. Pass-Through of Depreciation to Inflation in Mexico: An Analysis of the Consumer Price and Producer Price Indexes. Rev. mex. econ. finanz [online]. 2018, vol.13, n.4, pp.525-545. ISSN 2448-6795.  https://doi.org/10.21919/remef.v13i4.337.

This paper analyses the exchange rate pass-through to different price indices in Mexico, placing emphasis on the producer prices subdivisions. A VAR model is implemented for the estimations, using a monthly frequency from January 2004 to November 2016. Subsequently, response impulse functions that help measure the impact of the exchange rate shocks on prices are created. The results show that the pass-through elasticity is low for the consumer and producer prices, but it increases in the most recent period. The mining and manufacturing sectors are the sectors that reacted the most to changes in the exchange rate. The fact that the central bank continuously supervises the industries with greater pass-through and verifies its effects on the consumer prices is considered significant. This paper, unlike most others, also analyses producer prices. The results conclude that long periods of depreciation of the Mexican peso do affect the price levels in the economy.

Palabras llave : E30; E31; E58; F30; F31; F41; Inflation; Consumer Prices; Producer Prices; Exchange Rate; Pass-Through.