02586cas a2200325 a 4500 AALejournalIMF022169 230101c9999 xx r poo 0 0eng d 5.00 USD 9781616356156 1018-5941 BD-DhAAL BD-DhAAL Kpodar, Kangni. The Distributional Implications of the Impact of Fuel Price Increases on Inflation / Kangni Kpodar, Boya Liu. Washington, D.C. : International Monetary Fund, 2021. 1 online resource (34 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 This paper investigates the response of consumer price inflation to changes in domestic fuel prices, looking at the different categories of the overall consumer price index (CPI). We then combine household survey data with the CPI components to construct a CPI index for the poorest and richest income quintiles with the view to assess the distributional impact of the pass-through. To undertake this analysis, the paper provides an update to the Global Monthly Retail Fuel Price Database, expanding the product coverage to premium and regular fuels, the time dimension to December 2020, and the sample to 190 countries. Three key findings stand out. First, the response of inflation to gasoline price shocks is smaller, but more persistent and broad-based in developing economies than in advanced economies. Second, we show that past studies using crude oil prices instead of retail fuel prices to estimate the pass-through to inflation significantly underestimate it. Third, while the purchasing power of all households declines as fuel prices increase, the distributional impact is progressive. But the progressivity phases out within 6 months after the shock in advanced economies, whereas it persists beyond a year in developing countries. Mode of access: Internet Deflation imf Inflation imf Price Level imf Prices, Business Fluctuations, and Cycles imf Redistributive Effects imf Taxation and Subsidies imf Liu, Boya. IMF Working Papers; Working Paper ; No. 2021/271 Full text available on IMF http://elibrary.imf.org/view/journals/001/2021/271/001.2021.issue-271-en.xml IMF e-Library