This paper aims to examine the impacts of oil-price shocks on China's price levels. To that end, we develop a partial …-through mechanism during oil-price shocks. Using the models of both China and the U.S., we separate the impact of price control from … those of other factors leading to China's price stickiness under oil-price shocks. The results show a sharp contrast between …

even exclude important information. This paper develops a new underlying inflation gauge (UIG) for China which … China in modelling inflation. The paper is the first application of this type of dynamic factor model for inflation to any … large emerging market economy. Our UIG for China is less noisy but still closely tracks the headline CPI. It does not suffer …