A major challenge for monetary policy has been predicting how exchange rate movements will impact inflation. We propose …

economies, we find that the main driver of consumer price inflation is the global demand shock. A negative global demand shock …

. Previous literature has highlighted the role of an economy's "structure" - such as its inflation volatility, inflation rate …, forecasts predicting how a given exchange rate movement will impact inflation at a specific point in time should take into …

-oil import price shocks to euro area inflation at different stages of distribution (import prices, producer prices and consumer … large fraction of the variance in all price indices. They seem to have contributed largely to inflation in the euro area …