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

Luis Alvarez, Samuel Hurtado, Isabel Sánchez and Carlos Thomas

Economic Modelling, 2011, vol. 28, issue 1, 422-431

Abstract: This paper assesses the impact of oil price changes on Spanish and euro area consumer price inflation. We find that the inflationary effect of oil price changes in both economies 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. In both economies, direct effects have increased in the last decade, reflecting the higher expenditure share of households on refined oil products, whereas indirect and second-round effects seem to be losing importance.

Keywords: Oil prices; Consumer price inflation; Spanish and euro area inflation; DSGE models (search for similar items in EconPapers)
JEL-codes: E20 E31 E37 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (103)

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Journal Article: The impact of oil price changes on Spanish and euro area consumer price inflation (2011)
Working Paper: The impact of oil price changes on Spanish and euro area consumer price inflation (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecmode:v:28:y:2011:i:1:p:422-431

DOI: 10.1016/j.econmod.2010.08.006

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