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Oil Price Pass-Through into Core Inflation

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Abstract

Quantifying the magnitude and establishing the timing of the pass-through of oil price changes to consumer prices is crucial for forecasting inflation. Characterizing this pass-through is particularly important because oil prices tend to undergo wide fluctuations. In this note we presented estimates of the oil price pass-through into consumer prices both in the US and in the euro area.

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  • Cristina Conflitti & Matteo Luciani, 2017. "Oil Price Pass-Through into Core Inflation," FEDS Notes 2017-10-19-1, Board of Governors of the Federal Reserve System (U.S.).
    • Handle: RePEc:fip:fedgfn:2017-10-19-1
    DOI: 10.17016/2380-7172.2066
    Note: This note was revised on April 29, 2019 to correct the data table for Figure 1 on the accessible page. The previous version omitted the second table which describes the common component depicted in the right panel of the image.
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