Philippine food price inflation and its primary determinants: An econometric approach

• Main Authors: Calayan, Miguel Gabriel A., Farol, Kevin Patrick M., Jung, Hanna, Ocana, Ralph Chester B.
• Format: text
• Language: English
• Published: Animo Repository 2010
• Online Access: https://animorepository.dlsu.edu.ph/etd_bachelors/14449
• Institution: De La Salle University

Recent studies suggest that the 21st century global crisis is caused by three major factors: oil prices, exchange rates, and prices of agricultural commodities. In the Philippine setting, we believe that the same variables are the primary contributors to Philippine food price inflation. In addition, we further suggest that the harsh weather conditions in the country also do have a significant impact on its food prices. This study uses a monthly time series data from 2000-2010 for prices of energy and agricultural commodities, exchange rates, and weather to identify the causal relationship between each factor and food inflation using the Johansen co integration test, a vector error-correction model, and impulse response functions.