Goyal, Ashima; Tripathi, Shruti - In: International Journal of Monetary Economics and Finance 4 (2011) 4, pp. 330-354
Since consumer prices are a weighted average of domestic and imported goods prices, domestic Price Inflation (WPII) should cause Consumer Price Inflation (CPII). But at low per capita incomes average wages respond to food prices, raising costs and hence domestic prices. Then CPII, for which food...