The impact of oil price changes on Spanish and euro area consumer price inflation

Luis Alvarez, Samuel Hurtado, Isabel Sánchez () and Carlos Thomas
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Isabel Sánchez: Banco de España

No 904, Occasional Papers from Banco de España

Abstract: This paper assesses the impact of oil price changes on Spanish and euro area consumer price inflation. We find, consistently with recent international evidence, that the inflationary effect of oil price changes is limited, even though crude oil price fluctuations are a major driver of inflation variability. The impact on Spanish inflation is found to be somewhat higher than in the euro area. Direct effects are increasing over time, reflecting the higher spending of households on refined oil products, whereas indirect ones, defined in broad terms, are losing importance.

Keywords: oil prices; consumer price infl ation; Spanish and Euro area inflation; DSGE models (search for similar items in EconPapers)
JEL-codes: E20 E31 E37 (search for similar items in EconPapers)
Pages: 35 pages
Date: 2009-10
New Economics Papers: this item is included in nep-cba, nep-eec, nep-ene, nep-mac, nep-mon and nep-opm
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Citations: View citations in EconPapers (10)

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http://www.bde.es/f/webbde/SES/Secciones/Publicaci ... s/09/Fic/do0904e.pdf First version, October 2009 (application/pdf)

Related works:
Journal Article: The impact of oil price changes on Spanish and euro area consumer price inflation (2011)
Journal Article: The impact of oil price changes on Spanish and euro area consumer price inflation (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:bde:opaper:0904

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