Propagation of inflationary shocks in Costa Rica


  • Adolfo Rodríguez Vargas Banco Central de Costa Rica, Costa Rica


Propagation, inflation, shocks, structural VAR, JEL Classification, C32, E31



We present an estimation of propagation effects of inflationary shocks to groups and specific products of the CPI using a SVAR framework.  We found significant propagation effects for 6 out of the 12 groups of the CPI, which together account for 72% of the basket.  These groups include those related to food, home apparel and housekeeping services and transportation. The estimations suggest that shocks to Food and Non-Alcoholic Beverages and to fuels are passed through entirely to the rest of the CPI basket. The majority of the most important propagation effects occur between 6 and 10 months after the shocks.  This includes propagation effects stemming from shocks to fuels, products with regulated price, tradables and the IPPI index.

Author Biography

Adolfo Rodríguez Vargas, Banco Central de Costa Rica

Funcionario, Banco Central de Costa Rica.


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How to Cite

Propagation of inflationary shocks in Costa Rica. (2013). Economía Y Sociedad, 18(43), 33-58.



Article by invitation (non-arbitrated section)

How to Cite

Propagation of inflationary shocks in Costa Rica. (2013). Economía Y Sociedad, 18(43), 33-58.

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