Border prices of traded goods are highly sensitive to exchange rates; however, the consumer price index (CPI) and the … retail prices of goods that make up the CPI are more stable. This paper decomposes the sources of this price stability for … distribution margins and imported inputs in transmitting exchange rate fluctuations into consumption prices. We provide rich cross …

exchange rate movements and import prices. Recent debates hinge on whether producer-currency-pricing (PCP) or local currency … into import prices. However, for OECD countries, the most important determinants of changes in pass-through over time are …

three reasons for the change in pass-through into the retail prices of goods. First, pass-through may have declined at the … level of import prices, but the evidence is mixed over types of goods and countries. Second, there has been a large … heightened sensitivity to import prices and exchange rates. Finally, we consider whether there have been changing sectoral …

prices. We show that an exchange rate depreciation does not necessarily have a beggar-thy-neighbor effect and may in fact …

The inertia of traded goods' local currency prices in the face of exchange rate changes is a well-documented phenomenon … the incomplete transmission of exchange rate changes to prices. The approach is applied to micro data from the beer market …. We find that (a) wholesale prices appear more rigid than retail prices; (b) price adjustment costs on average account for …