Discussion Paper

Oil Price Pass-Through into Core Inflation


Abstract: Quantifying the magnitude and establishing the timing of the pass-through of oil price changes to consumer prices is crucial for forecasting inflation. Characterizing this pass-through is particularly important because oil prices tend to undergo wide fluctuations. In this note we presented estimates of the oil price pass-through into consumer prices both in the US and in the euro area.

https://doi.org/10.17016/2380-7172.2066

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Bibliographic Information

Provider: Board of Governors of the Federal Reserve System (U.S.)

Part of Series: FEDS Notes

Publication Date: 2017-10-19

Number: 2017-10-19-1

Note: This note was revised on April 29, 2019 to correct the data table for Figure 1 on the accessible page. The previous version omitted the second table which describes the common component depicted in the right panel of the image.