01872cas a2200253 a 4500 AALejournalIMF020963 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513546094 1018-5941 BD-DhAAL BD-DhAAL Abdallah, Chadi. How Large and Persistent is the Response of Inflation to Changes in Retail Energy Prices? / Chadi Abdallah, Kangni Kpodar. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (31 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We estimate the dynamic effects of changes in retail energy prices on inflation using a novel monthly database, covering 110 countries over 2000:M1 to 2016:M6. We find that (i) inflation responds positively to retail energy price shocks, with effects being, on average, modest and transitory. However, our results suggest significant heterogeneity in the response of inflation to these shocks owing to differences in factors related to labor market flexibility, energy intensity, and monetary policy credibility. We also find compelling evidence of asymmetric effects-under sufficiently large shocks-in the case of high-income and low-income countries, with increases in retail fuel prices inducing larger effects on inflation than decreases in fuel prices. Mode of access: Internet Kpodar, Kangni. IMF Working Papers; Working Paper ; No. 2020/093 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/093/001.2020.issue-093-en.xml IMF e-Library