Effects of Energy Prices on Food Consumer Price Inflation

Richhild Moessner

No 11682, CESifo Working Paper Series from CESifo

Abstract: This paper studies the effects of country-specific energy prices on food consumer price inflation (CPI) within a cross-country Phillips curve framework. It considers a panel of 36 OECD member and candidate economies using quarterly data from the start of 1994 to the end of 2021. We find that energy CPI inflation has a significantly positive effect on food CPI inflation, after controlling for the output gap, exchange rate changes and global factors. This result is generally robust to also controlling for inflation expectations, global food commodity prices and core CPI inflation. We also find that the effect of energy CPI inflation on food CPI inflation is significantly larger when energy dependency is higher.

Keywords: inflation; food prices; energy prices (search for similar items in EconPapers)
JEL-codes: E31 E52 E58 (search for similar items in EconPapers)
Date: 2025
New Economics Papers: this item is included in nep-inv, nep-mac and nep-mon
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_11682

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