The surge in energy prices in 2022 has been a defining factor behind the increase in euro area inflation. We assess the … to mute the effects of the increase in energy prices and to lower inflation. Overall, we find that these unconventional … measures reduced euro area inflation by 1 to 2 percentage points in 2022 and may avoid an undershoot later on. When …

Nominal wage growth in Denmark has so far been modest and outpaced by high inflation, putting real wage growth in … eventual impact on inflation. The analysis suggests that wage formation in Denmark has historically been partly backward …-looking, and economic slack also has played a role. Given these, high inflation realized thus far and the tightness in the labor …

This paper examines recent trends, main drivers, and risks to near-term inflation in Portugal. Before the energy crisis …, inflation in Portugal was low, often below the Euro Area average, but it accelerated quickly in the second half of 2022. Our … estimated Phillips curve regression suggests that, similarly to other Euro Area countries, inflation in Portugal has been …

Inflation has risen sharply in Cyprus, initially driven by imported prices, but increasingly broadening to domestic … prices. A Phillips Curve estimate attributes the high inflation largely to energy prices, external price pressures, and … inflation expectations at the end of 2022. Historically high pass-through of inflation shocks to wages-amplified by a tight …

This paper analyzes recent inflation developments in the WAEMU. As in all inflation spikes in the past two decades …, food is the main driver of inflation. The contribution from energy prices is also increasing, while inflation contagion … effects are still limited to a few sectors. The share of professionals that believe that inflation will continue above the …

inflation. Through a novel consumption deflator decomposition, we show that import prices account for 40 percent of the average … convergence of inflation to target over the next two years. Monetary policy will thus need to remain restrictive to anchor …

We assess the bivariate relation between money growth and inflation in the euro area and the United States using hybrid … statistically unstable across time in both regions. The effect of money growth on inflation weakened notably after the 1980s before … maximum impact of money growth on inflation is increasing in the trend level of inflation. These results caution against …

This paper analyzes the inflation forecast errors over the period 2021Q1-2022Q3 using forecasts of core and headline … inflation from the International Monetary Fund World Economic Outlook for a large group of advanced and emerging market … information. Focusing on core inflation forecast errors in 2021, four factors provide a potential ex post explanation: a stronger …

This paper investigates the impact of fiscal shocks on inflation, using a large panel of 139 countries over the period … 1970-2021. First, both headline and core measures of inflation increase in response to expansionary shifts in the fiscal … with care in aggregate demand management as it has significant effects on inflation, which are highly dependent on fiscal …