The impact of oil prices on products groups inflation: is the effect asymmetric?

• Ligia Topan ^[1] ; Miguel Jerez ^[1] ; Sonia Sotoca ^[1]
  1. [1] Universidad Complutense de Madrid

     Universidad Complutense de Madrid

     Madrid, España

     
• Localización: Documentos de Trabajo (ICAE), ISSN-e 2341-2356, Nº. 2, 2020, págs. 1-24
• Idioma: inglés
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• Resumen

  • In this paper we assess the oil price pass-through into both, the global inflation in Spain and the inflation derived from the non-deterministic prices of the standard European classification of product groups, during the period 2002-2018. To this end we fit a transfer function to inflation in each group, extended to allow for an asymmetry in the transmission of positive/negative oil cost shocks, that is, a “rockets and feathers effect”. Our results show that most often there is a significant asymmetry, which can be explained by the degree of competition in each market.