IDEAS home Printed from https://ideas.repec.org/a/taf/apeclt/v33y2026i3p411-416.html

The transmission of shocks to food and energy commodity prices to food inflation in the euro area

Author

Listed:
  • Fructuoso Borrallo
  • Lucía Cuadro-Sáez
  • Águeda Gras-Miralles
  • Javier J. Perez

Abstract

We estimate how shocks to food and energy (fuel) commodity prices pass-through to food consumer prices in the euro area, where the current episode of substantial and persistent increase in food prices is unprecedented when looking at the past decades. We extend the workhorse food value-chain model of Ferrucci et al. (2012) to account for fuel prices and asymmetries. We show that there is a persistent and significant effect of shocks to food and energy commodity prices on food inflation that reaches a maximum at around 12 months after the shock. We also show that both types of shocks impact food consumer prices in an asymmetric way, with increases in prices having a significant, positive effect, while price decreases have a milder effect in the case of food commodities and a statistically non-significant effect in the case of energy commodities.

Suggested Citation

  • Fructuoso Borrallo & Lucía Cuadro-Sáez & Águeda Gras-Miralles & Javier J. Perez, 2026. "The transmission of shocks to food and energy commodity prices to food inflation in the euro area," Applied Economics Letters, Taylor & Francis Journals, vol. 33(3), pages 411-416, February.
    • Handle: RePEc:taf:apeclt:v:33:y:2026:i:3:p:411-416
    DOI: 10.1080/13504851.2024.2369711
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/13504851.2024.2369711
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/13504851.2024.2369711?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

    for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    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:taf:apeclt:v:33:y:2026:i:3:p:411-416. 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/RAEL20 .

    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.