Page 34 - Azerbaijan State University of Economics

Vugar Rahimov, Nigar Jafarova: The Exchange Rate Pass-Through to Aggregate
Consumer Price Index and Its Components In Azerbaijan

APPENDIX A1

Data and sources
Oil revenue: Oil revenue is calculated as the product of real price of oil and oil
production for a given country. Oil price is deflated using US CPI. The source for
this indicator is the US Energy Information Administration Database (EIA). Data on
oil production is taken from the EIA database. Both series are seasonally adjusted by
means of the X-12 Census procedure.
Trading partners’ CPI: Data on trading partners’ CPI (2002 = 100) is calculated
by using NEER and REER series which is published by Bruegel database. Taking
the last quarter of 2002 as base period and normalizing all series to 100 we divide
NEER to REER series and multiply it to the domestic CPI to get the trading
partners’ CPI. This series is also seasonally adjusted.
NEER: Nominal effective exchange rate (2002 = 100) is taken as trade weighted
index of bilateral exchange rates of major trading partners. The source for this series
is Bruegel database. This series is seasonally adjusted through X-12 seasonal
adjustment procedure.
Domestic CPI: Consumer Prices Index (2002 = 100) is obtained from the State
Statistical Committee of Azerbaijan. X-12 Census methodology is applied to obtain
seasonally adjusted series.
Components of CPI: Food, non-food, service components of CPI (2002 = 100) are
obtained from the State Statistical Committee of Azerbaijan. X-12 Census
methodology is applied to obtain seasonally adjusted series.

34