Causes and Implications of Elevated Inflation in Cyprus

July 7, 2023

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Format: Chicago

Robert C. M. Beyer Causes and Implications of Elevated Inflation in Cyprus, (USA: International Monetary Fund, 2023) accessed October 4, 2024

Summary

Inflation has risen sharply in Cyprus, initially driven by imported prices, but increasingly broadening to domestic prices. A Phillips Curve estimate attributes the high inflation largely to energy prices, external price pressures, and inflation expectations at the end of 2022. Historically high pass-through of inflation shocks to wages—amplified by a tight labor market—may make inflation persistent. This calls for policies to stem inflationary pressures while protecting vulnerable households.

Subject: Energy pricing, Expenditure, Income, Inflation, International organization, Monetary policy, National accounts, Oil prices, Prices

Keywords: C. inflation driver, Cyprus, E. inflation outlook, Energy Prices, Energy pricing, Europe, Import Prices, Income, Inflation, Inflation expectation, Inflation shock, Oil prices, Phillips Curve, Phillips Curve estimate, Wages

Publication Details

Pages:

14
Volume:

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DOI:

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Issue:

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Series:

Selected Issues Paper No. 2023/042
Stock No:

SIPEA2023042
ISBN:

9798400247453
ISSN:

2958-7875

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