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The spread of inflation from energy to other components

Author

Listed:
  • José González Mínguez

    (Banco de España)

  • Samuel Hurtado

    (Banco de España)

  • Danilo Leiva-León

    (Banco de España)

  • Alberto Urtasun

    (Banco de España)

Abstract

Rationale Inflation has risen continuously since December 2020. The increase was initially confined to the energy component, but has subsequently spread to food and the other components. It is important to understand the extent to which the spread of inflation is the result of higher energy prices. Takeaways •The influence of energy prices on underlying inflation has increased. •This is partly due to the larger size of recent shocks, but also to an intensification of the pass-through of the changes in energy prices to other consumer prices.

Suggested Citation

  • José González Mínguez & Samuel Hurtado & Danilo Leiva-León & Alberto Urtasun, 2023. "The spread of inflation from energy to other components," Economic Bulletin, Banco de España, issue 2023/Q1.
    • Handle: RePEc:bde:journl:y:2023:i:01:n:02
    DOI: https://doi.org/10.53479/25119
    as

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    References listed on IDEAS

    as
    1. Francis X. Diebold & Kamil Yilmaz, 2009. "Measuring Financial Asset Return and Volatility Spillovers, with Application to Global Equity Markets," Economic Journal, Royal Economic Society, vol. 119(534), pages 158-171, January.
    2. Matías Pacce & Isabel Sánchez & Marta Suárez-Varela, 2021. "Recent developments in spanish retail electricity prices: the role played by the cost of CO2 emission allowances and higher gas prices," Occasional Papers 2120, Banco de España.
    3. Corinna Ghirelli & María Gil & Javier J. Pérez & Alberto Urtasun, 2021. "Measuring economic and economic policy uncertainty and their macroeconomic effects: the case of Spain," Empirical Economics, Springer, vol. 60(2), pages 869-892, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Inflation; energy; vector autoregression.;
    All these keywords.

    JEL classification:

    • C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Bayesian Analysis: General
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation

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