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Contributions of demand and supply shocks to inflation in the euro area countries

Author

Listed:
  • Roberts Liepnieks
  • Karsten Staehr
  • Olegs Tkacevs

Abstract

This letter estimates the contributions of aggregate demand and supply shocks to consumer price inflation in the 12 founding members of the euro area from 1999q1 to 2023q1. Demand and supply shocks are broadly equally important drivers of inflation, but their relative importance varies over time. There are furthermore noticeable asymmetries across the 12 countries, in particular during periods of crisis.

Suggested Citation

  • Roberts Liepnieks & Karsten Staehr & Olegs Tkacevs, 2026. "Contributions of demand and supply shocks to inflation in the euro area countries," Applied Economics Letters, Taylor & Francis Journals, vol. 33(6), pages 781-786, March.
    • Handle: RePEc:taf:apeclt:v:33:y:2026:i:6:p:781-786
    DOI: 10.1080/13504851.2024.2394204
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