The pass-through influence of exchange rate on the inflation: A study in Vietnam
Keywords:
Exchange rate, inflation, exchang rate pass-through.
Abstract
The purpose of this paper is to examine whether or not there is a pass-through influence of the
USD/VND exchange rate on the import price index (IMP), producer price index (PPI) and consumer price
index (CPI) in Vietnam. By using vector autoregressive model - VAR with quarterly data for the period from
2005 to 2022 to estimate the pass-through impact of exchange rate of USD/VND on 3 price indices including
import price index imports (IMP), producer price index (PPI) and consumer price index (CPI). The results
indicate that the exchange rate affects all selected price indices on a desending scale. Based on the empirical
outcomes, some recommendations are proposed for policy-makers to implement appropriate monetary and
exchange rate policies.
