Distinctive Characteristics of PPI and CPI

The study explores the intricate relationship between the producer price index (PPI) and consumer price index (CPI) in Central and Eastern European countries, utilizing advanced analytical methods like wavelet analysis and SGMM regression. It reveals bidirectional causality across different time frames and emphasizes the significant influence of various macroeconomic variables on this relationship. The findings highlight the importance of understanding these dynamics for effective policy formulation aimed at achieving price stability, stressing the need for comprehensive data across the value creation chain.