This paper documents, for the first time in a systematic manner, the link between labor cost and price inflation in the … and price inflation in the four major economies of the euro area and across the three main sectors. The dynamic …. Our results show that it is more likely that labor costs are passed on to price inflation with demand shocks than with …

The link between US labor cost and price inflation has weakened notably over the past three decades. In this paper we … economy of late: (i) improved anchoring of inflation expectations; (ii) the changing constellation of shocks hitting the … economy; (iii) increased trade integration and (iv) rising firm market power. We find that the improved anchoring of inflation …

Inflation in the euro area has been falling since mid-2013, turned negative at the end of 2014 and remained below … by means of sign restrictions, to inflation and economic activity. Shocks to oil supply do not tell the full story about … contractionary. A country analysis confirms that the negative effects of oil supply and monetary policy shocks on inflation was …

patterns in economic activity and inflation following oil price shocks in the euro area. In the normal regime, oil price shocks … followed by sizeable and sustained macroeconomic fluctuations, with inflation and economic activity moving in the same … direction as the oil price. The responses of inflation expectations and wage growth point to second-round effects as a potential …

This paper studies the effect of monetary policy on inflation along the income distribution in several euro area …. On the one hand, different consumption shares imply that inflation by high-income households responds less to monetary … its reaction to monetary policy, which imply that inflation by high-income households responds more to monetary policy. …

affect medium-term inflation, the primary objective of monetary policy. Using panel local projections for 48 advanced and … inflation in the near term, especially in EMEs. But over the medium term, the impact across the various price indices tends to …

changes in inflation on fiscal policy. We find evidence of non-linear short-term effects of HICP inflation on the primary … an inflation turning point - beyond which its short-term (contemporaneous) impact on the primary balance starts being … the whole sample of euro area countries in 2022 (EA-19). Using an alternative measure of "inflation surprise" (available …

This paper studies the nature, evolution, and sources of inflation heterogeneity across households in France and … Germany. Inflation differences are large and persistent. The two main sources of inflation heterogeneity are spatial …. Income heterogeneity by itself is not a relevant determinant of inflation heterogeneity, but due to its correlation with …

synchronized within rather than across stores. Time variations in inflation can be attributed mainly to variations in the frequency …