The outlook is mixed: the asymmetric effects of weather shocks on inflation

Matteo Ciccarelli, Friderike Kuik and Catalina Martínez Hernández

Research Bulletin, 2023, vol. 111

Abstract: Climate change has implications for price stability and the work of central banks. It may increase the volatility and heterogeneity of inflation, and hotter summers may lead to more frequent and persistent upward pressures on food and services inflation. Our empirical study provides evidence for the four largest euro area economies and outlines the relationship between temperature and inflation. JEL Classification: Q54, E31, C32

Keywords: climate change; inflation; temperature shocks; vector autoregression (search for similar items in EconPapers)
Date: 2023-10
Note: 224580
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Citations: View citations in EconPapers (4)

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