Detailed Information on Publication Record

KRKOŠKOVÁ, Radmila. Comparison of the Relationship between CPI and PPI in the Czech Republic and Slovakia. Online. In Hana Vojáčková. 40th International Conference Mathematical Methods in Economics 2022. Jihlava: College of Polytechnics Jihlava, 2022, p. 199-204. ISBN 978-80-88064-62-6.

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Basic information
Original name	Comparison of the Relationship between CPI and PPI in the Czech Republic and Slovakia
Authors	KRKOŠKOVÁ, Radmila (203 Czech Republic, guarantor, belonging to the institution).
Edition	Jihlava, 40th International Conference Mathematical Methods in Economics 2022, p. 199-204, 6 pp. 2022.
Publisher	College of Polytechnics Jihlava

Other information
Original language	English
Type of outcome	Proceedings paper
Field of Study	10102 Applied mathematics
Country of publisher	Czech Republic
Confidentiality degree	is not subject to a state or trade secret
Publication form	electronic version available online
WWW	URL
RIV identification code	RIV/47813059:19520/22:A0000328
Organization unit	School of Business Administration in Karvina
ISBN	978-80-88064-62-6
Keywords in English	ADF test; CPI; Granger causality; impulse-response function; PPI; VEC model
Changed by	Changed by: Mgr. Radmila Krkošková, Ph.D., učo 48703. Changed: 16/9/2022 09:29.

Abstract
The goal of this article is to investigate the existence and character of the relationship between the Consumer Price Index (CPI) and the Producer Price Index (PPI) for the Czech Republic and Slovakia. Is there a relationship between the CPI and PPI? The CPI-PPI indicator also has a strong correlation with the overall growth rate of the economy. The smaller the difference between CPI-PPI, the higher the operating cost of the enterprise, the lower the profit of the enterprise, the slower growth of the profit of the enterprise, and the slower economic growth. The existence of a long-run equilibrium relationship between CPI and PPI has been tested with the Johansen cointegration. The existence of a long-run equilibrium relationship between CPI and PPI was confirmed in the case of Slovakia. The short-run dynamics were confirmed through statistical methods such as VEC model, Granger causality, and impulse-response function. Granger causality CPI→PPI was confirmed in Slovakia, and the causality PPI→CPI was confirmed in the Czech Republic. The EViews 12 was used for data evaluation. The results are based on the analysis of the data from Eurostat from January 2005 to June 2021 for the Czech Republic and Slovakia.

Abstract

The goal of this article is to investigate the existence and character of the relationship between the Consumer Price Index (CPI) and the Producer Price Index (PPI) for the Czech Republic and Slovakia. Is there a relationship between the CPI and PPI? The CPI-PPI indicator also has a strong correlation with the overall growth rate of the economy. The smaller the difference between CPI-PPI, the higher the operating cost of the enterprise, the lower the profit of the enterprise, the slower growth of the profit of the enterprise, and the slower economic growth. The existence of a long-run equilibrium relationship between CPI and PPI has been tested with the Johansen cointegration. The existence of a long-run equilibrium relationship between CPI and PPI was confirmed in the case of Slovakia. The short-run dynamics were confirmed through statistical methods such as VEC model, Granger causality, and impulse-response function. Granger causality CPI→PPI was confirmed in Slovakia, and the causality PPI→CPI was confirmed in the Czech Republic. The EViews 12 was used for data evaluation. The results are based on the analysis of the data from Eurostat from January 2005 to June 2021 for the Czech Republic and Slovakia.