WP 2016-04: Computing the relative price divergence as a measure of inflation pressure in Peru

N°	WP 2016-04
Title	Computing the relative price divergence as a measure of inflation pressure in Peru
Original title	Tendencias comunes en el índice de precios al consumidor
Author(s)	Maria Gracia Ramos and Diego Winkelried
Language	Spanish
Date	2016/04/30
Abstract	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.
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