Work

Energy expenditures and CPI inflation in 2022: Inflation was even higher than we thought

Year: 2025

Type: article

Abstract: Following the sudden increase in the energy price in the second quarter of 2022 caused by the Russia-Ukraine war, inelastic demand generated significant changes in household expenditure shares for energy (particularly in electricity, gas, and other fuels and in fuels and lubricants). These produced a significant downward bias in the official CPI inflation rate for energy and in the official CPI inflation rate for all items in the UK. The downward bias was significantly higher in the European Union in 2022, specifically in Belgium, Estonia, Ireland, Greece, Italy, Cyprus, Lithuania, the Netherlands, Romania, and Slovenia.

Source: Energy Economics

DOI: 10.1016/j.eneco.2025.108482

Authors: Aftab Chowdhury, Huw Dixon

Institution: Cardiff University

Language: English

Topic: Energy, Environment, and Transportation Policies

Subfield: Renewable Energy, Sustainability and the Environment

Field: Energy

Domain: Physical Sciences

SDG: Climate action

Open Access status: hybrid

Estimated APC paid: $4,280