Dynamics of the Brazilian industrial inflation: a sectoral approach (1999-2014)

Vol. 38 No. 4 (2018)

Oct-Dec / 2018
Published February 26, 2020
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Carvalho de Moraes e Silva, Flávia, Carmem Feijó, and André de Melo Modenesi. 2018. “Dynamics of the Brazilian Industrial Inflation: A Sectoral Approach (1999-2014) ”. Brazilian Journal of Political Economy 38 (4):690-707. https://doi.org/10.1590/0101-3157-2018-2863.

Dynamics of the Brazilian industrial inflation: a sectoral approach (1999-2014)

Flávia Carvalho de Moraes e Silva
Mestre pela Universidade Federal Fluminense, Rio de Janeiro/RJ, Brasil.
Carmem Feijó
Professora titular da Universidade Federal Fluminense, Rio de Janeiro/RJ, Brasil e pesquisadora do CNPq.
André de Melo Modenesi
Professor associado do Instituto de Economia da Universidade Federal do Rio de Janeiro - IE/UFRJ, Rio de Janeiro/RJ, Brasil e pesquisador do CNPq.
Brazilian Journal of Political Economy, Vol. 38 No. 4 (2018), Oct-Dec / 2018, Pages 690-707

Abstract

This paper investigates the dynamics of the Brazilian industrial inflation during 1999-2014. Based on the post-Keynesian theory on price formation and distributive conflict, the paper discusses the importance of sectoral differences for the analysis of Brazilian inflation in the 2000s. These differences are important since they can lead to heterogeneous reactions in the face of different inflationary pressures. Micro and macroeconomic approaches are considered in order to contribute to the diagnosis of Brazilian industrial inflation. An econometric exercise with panel data is conducted to estimate the effects of the impact of changes in costs, wages, demand and lagged prices on changes in final prices. We find that, considering sectoral heterogeneity, cost shocks are the main explanatory variable for the inflation dynamics.

JEL Classification: E12; E31; E52; E64


Keywords: Inflation sectoral heterogeneity panel data Brazil