Commodity price pass-through and inflation regimes

Rethinking Supply Chain Disruption Strategy to Address Challenges of Diversification and Substitution as an Instrument Contingency in Some Manufacturing Firms in Indonesia

“…Due to the Covid-19 pandemic's series of disruptions, the problem of raw material supply chains is becoming a "disaster" for domestic manufacturers in Indonesia (Oh et al, 2020;Xiangyu Tian et al, 2022;Weber, 2021). The stagflation of the global economy due to the geopolitics of the Russia-Ukraine war and the unpredictable stability of the domestic economy (Abbas & Lan, 2020;Bhatti et al, 2021;Furceri et al, 2022;Jongwanich et al, 2019;Sahoo & Sethi, 2018).…”

“…Supply chain disruptions have significantly negatively impacted some manufacturing companies in Indonesia due to the COVID-19 pandemic and Russia's invasion of Ukraine. Fears it will have a devastating impact in the face of the threat of stagflation (Abbas & Lan, 2020;Bhatti et al, 2021;Furceri et al, 2022).…”

“…The global economy has always been dynamic and challenging for the domestic industrial situation, as evidenced by the COVID-19 pandemic's slowdown in economic productivity (see also : Abbas & Lan, 2020;Guo, Kubli, & Saner, 2021;Jongwanich, Park, & Wongcharoen, 2019). High inflation, high-interest rates, and a scarcity of capital indicate that the global economy is entering a new chapter, directly impacting supply chains (Abbas & Lan, 2020;Bhatti, Chaudhry, Rehman, & Bashir, 2021;Furceri, Carriere-Swallow, Deb, Jimenez, & Ostry, 2022). As the manufacturing industry's policy structure has changed, the efficiency principle has become more urgent and relevant (van Wyk, Naidoo, & Edoun, 2021;Zghurska, Somkina, Dymenko, & Kapelyushna, 2019).…”

Global Food Prices and Inflation

“…First, it applies the recently developed endogenous regime switching model due to Chang et al (2023) to derive measures of both global food price mean and volatility; compared to other methods the adopted one has the advantage of allowing for unsynchronised switches in the mean and in the volatility, which are determined by latent factors, and also of accounting for possible feedback from past innovations. Second, it uses the FAO food price index, which measures specifically food prices (both aggregate and disaggregate) as opposed to the overall commodity prices which are often analysed in other studies (see, e.g., Gelos and Ustyugova, 2017;Abbas and Lan, 2020). Third, it performs a VAR analysis with an appropriate identification scheme to examine the effects of global food price mean and volatility shocks.…”

Does the Sleman Chili Auction Market Affect the Local, Regional and National Market Prices in Indonesia?

“…Low and stable inflation is one of the requirements for a country to experience sustained economic growth. Therefore, several studies investigate the dynamics and factors of inflation in several countries (Abbas & Lan, 2020;Bhattacharya & Jain, 2020;Bhattacharya, Jain, & Singh, 2019;Iddrisu & Alagidede, 2020). There is a lag between changes in supply and demand for food commodities resulting in domestic food commodity prices fluctuating.…”