EconomicsSample research
Food price inflation and the pass-through puzzle
Why commodity price falls reach shelves so slowly.
Bank for International Settlements (sample) · Working paper · 12 Oct · 32 min full read
Why PARIS surfaced thisFollow-on research
PARIS summary · 50 words
Using retail scanner data across 14 economies, the paper finds commodity price increases pass through to food retail roughly twice as fast as decreases. Market concentration in processing, rather than retail, explains most of the asymmetry. The authors suggest this has implications for margin strategy across the agri-food value chain.
Why You Should Read This
Demonstration connections Your priorities
Context for pricing assumptions in the agribusiness strategy; summary is sufficient for now.
Questions addressed
- Are pricing elasticity assumptions symmetric when they should not be?
Practical applications
- Revisit pricing elasticity assumptions in the 2027 budget.
Your assumptions
ExtendsExtends the value-chain analysis with evidence on processor concentration.
Connections are illustrative sample data. Uploaded documents have not been analysed.
Key findings
- 01Upward pass-through is ~2x faster than downward.
- 02Processor concentration explains most asymmetry.
Your notes
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