IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v314y2025ics0360544224038854.html
   My bibliography  Save this article

Identifying influence pathways of oil price shocks on inflation based on impulse response networks

Author

Listed:
  • Zhao, Yiran
  • Gao, Xiangyun
  • Zheng, Huiling
  • Zhang, Yupeng
  • Sun, Qingru
  • Wang, Anjian
  • An, HaiZhong

Abstract

This study examines the impact of international crude oil prices on national sub-price indices following external shocks. It analyzes the heterogeneous transmission mechanisms of these shocks across diverse national price index networks. To achieve this, we employ Granger causality tests as the filter to construct impulse response networks. This approach helps unveil the duration, magnitude, and pathways of impact on sub-price indices in five countries: China, the US, Russia, Germany, and the UK. Our findings suggest that the impact of crude oil price changes on national sub-price indices is most pronounced within 1–2 months, and more persistent on the Producer Price Index (PPI) than the Consumer Price Index (CPI). Identifying specific sub-price indices affected by shocks shows that China and the US are more significantly impacted. Moreover, identifying the transmission paths of crude oil price changes within a country's internal price system underscores the significance of the CPI of transportation. This study of price transmission within countries offers key insights for managing economic shocks at the microeconomic level.

Suggested Citation

  • Zhao, Yiran & Gao, Xiangyun & Zheng, Huiling & Zhang, Yupeng & Sun, Qingru & Wang, Anjian & An, HaiZhong, 2025. "Identifying influence pathways of oil price shocks on inflation based on impulse response networks," Energy, Elsevier, vol. 314(C).
    • Handle: RePEc:eee:energy:v:314:y:2025:i:c:s0360544224038854
    DOI: 10.1016/j.energy.2024.134107
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544224038854
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2024.134107?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Meng Qin & Hongfang Jiang & Lidong Pang & Chiwei Su, 2025. "Is Oil Really a Stumbling Block to Environmental Sustainability? From the Price Perspective," Sustainability, MDPI, vol. 17(5), pages 1-17, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:314:y:2025:i:c:s0360544224038854. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.