A new look at oil price pass-through into inflation: Evidence from disaggregated European data

This paper analyzes oil price pass-through into inflation at disaggregate level for the euro area and its four main economies (France, Germany, Italy and Spain). The pattern of responses to oil price changes is quantitatively diverse across economies and across items of disaggregate inflation. Moreover, our findings suggest that aggregation of effects at disaggregate level could be more accurate than the direct calculation of the effects on aggregate inflation given that indirect and second round effects may offset the positive effects found in energy inflation and dissipate the effect on total inflation.

CASTRO Cesar;  JIMENEZ-RODRIGUEZ Rebeca;  PONCELA BLANCO Maria Del Pilar;  SENRA Eva; 

2016-12-22

SPRINGER INTERNATIONAL PUBLISHING AG

JRC101912

1120-2890,   

http://rd.springer.com/article/10.1007/s40888-016-0048-9,    https://publications.jrc.ec.europa.eu/repository/handle/JRC101912,   

10.1007/s40888-016-0048-9,