Work

From global energy price shocks to firms’ inflation expectations

Year: 2025

Type: article

Abstract: This paper provides empirical evidence on a statistically significant pass-through from global energy price shocks to firms’ inflation expectations in an oil-importing country. The results show that the size and duration of the pass-through depend crucially on the current local energy pricing policy. Hence, this policy affects the way firms form inflation expectations. In turn, it may affect the intensity of the pass-through from global energy price shocks to domestic inflation.

Source: Latin American Journal of Central Banking

DOI: 10.1016/j.latcb.2025.100168

Authors: Miguel Mello, Jorge Ponce

Institution: Banco Central del Uruguay

Language: English

Topic: Market Dynamics and Volatility

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Affordable and clean energy, Climate action

Open Access status: gold

Estimated APC paid: $1,700