How Has the COVID-19 Pandemic Impacted the Consumer Price Index? Evidence from China

Zhao, Z., 2022. How has the covid-19 pandemic impacted the consumer price index? Evidence from china. The Economic Review 73(4), Otaru University of Commerce (forthcoming).

23 Pages Posted: 26 Apr 2022 Last revised: 24 Jan 2023

See all articles by Ziyan Zhao

Ziyan Zhao

Nanyang Technological University (NTU) - Division of Economics

Date Written: July 14, 2022

Abstract

This paper provides empirical insight into the impact of the COVID-19 pandemic on the consumer price index (CPI) using a difference-in-difference approach. Using monthly panel data for eight CPI categories for China and considering two specifications (i.e., the average effect and month-by-month effect), we reveal that the pandemic had a persistent negative impact on housing and daily consumables, whereas no evidence was found for a strong effect on health care. Regarding education, culture, and recreation, the pandemic mainly had a persistent positive effect over the initial months of the pandemic and then a negative effect for several months. In addition, the pandemic could have a positive effect on food, tobacco, and liquor, while it may have a persistent negative impact on clothing, transport, and communications. Furthermore, there could be a positive effect, which has increased slightly since the pandemic outbreak, on other articles and services.

Keywords: CPI, COVID-19, difference-in-difference, average effect, month-by-month effect

JEL Classification: C33, E31, O11

Suggested Citation

Zhao, Ziyan, How Has the COVID-19 Pandemic Impacted the Consumer Price Index? Evidence from China (July 14, 2022). Zhao, Z., 2022. How has the covid-19 pandemic impacted the consumer price index? Evidence from china. The Economic Review 73(4), Otaru University of Commerce (forthcoming)., Available at SSRN: https://ssrn.com/abstract=4090720 or http://dx.doi.org/10.2139/ssrn.4090720

Ziyan Zhao (Contact Author)

Nanyang Technological University (NTU) - Division of Economics ( email )

HSS 04-53, 14 Nanyang Drive
Singapore, 639798
Singapore

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