Economic commentaries: How inflation is affected by a rise in the oil price

Date 16/05/2008

In an Economic Commentary authors Mårten Bjellerup and Mårten Löf make an attempt to estimate what effects the oil price has on inflation in Sweden. Their calculations show for instance that if the price of oil is raised by 10 per cent, prices will be 0.25 percentage points higher after 5 years than would have been the case if the oil price had remained constant.