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Oil price pass-through into inflation

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  • Chen, Shiu-Sheng

Abstract

This paper uses data from 19 industrialized countries to investigate oil price pass-through into inflation across countries and over time. A time-varying pass-through coefficient is estimated and the determinants of the recent declining effects of oil shocks on inflation are investigated. The appreciation of the domestic currency, a more active monetary policy in response to inflation, and a higher degree of trade openness are found to explain the decline in oil price pass-through.

Suggested Citation

  • Chen, Shiu-Sheng, 2009. "Oil price pass-through into inflation," Energy Economics, Elsevier, vol. 31(1), pages 126-133, January.
    • Handle: RePEc:eee:eneeco:v:31:y:2009:i:1:p:126-133
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    Keywords

    Oil Prices Inflation;

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