The increase in headline inflation in the March quarter was mainly due to higher tradables
inflation, particularly petrol and food prices.
goods and services--goods and services that can be sold in a location, typically another country, different from where they were produced--are, theoretically, sold at the same price wherever they are sold.
Employing historical time series data from the Bureau of Labor Statistics and the Bureau of Economic Analysis, US industries are separated into internationally tradable
and nontradable components, allowing for employment and value-added trends at both the industry and the aggregate level to be examined.
It is true, as Spence claims, that the tradable
sector of the economy has lost many jobs in the past several decades.
We assume that debt is denominated in units of tradables
with a credit constraint that links credit-market access to income, including non-tradable
The Balassa-Samuelson effect postulates that inflation is driven by productivity growth in the tradable
sector, as knowledge spillovers from abroad speed the process of real convergence.
N] are consumption of tradables
and nontradables, respectively, while family-consumption decisions correspond to lines [OC.
The dilemma doesn't exist for a producer located in a developed country because both tradables
and nontradables trade in hard currency, Yotopoulos said.
The exchange rate remains higher than is sustainable for balanced economic growth and, together with low global inflation, continues to generate negative inflation in the tradables
It notes that any given percentage movement in the exchange rate typically results in much smaller percentage movements in tradables
consumer prices, something described as 'incomplete' pass-through.
As a result, such models tend to attribute differences in income among countries to different levels of productivity in the tradables
sectors of respective countries.
in retail stores is assumed as part of expenditure on tradables
While this applies to both sectors of the economy, there is evidence that the productivity gap is larger for tradables
than it is for non-tradables
Although this may partly reflect improved export prices, the high exchange rate continues to place pressure on the export and import-competing sectors and, together with low global inflation, is causing negative inflation in the tradables
The CPI can be split into two broad groups: tradables
(which account for around 44 percent of the CPI) and non-tradables
(which account for around 56 percent).