Dutch Inflation: Developments, Drivers, and the Risk of Wage-Price Spiral: NETHERLANDS
Selected Issues Papers, March 13, 2023
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- Dutch Inflation: Developments, Drivers, and the Risk of Wage-Price Spiral: NETHERLANDS
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Bibliographic details
- Authors: Saioa Armendariz, Alla Myrvoda
- Published: March 13, 2023
- Series: Selected Issues Papers
- DOI: https://doi.org/10.5089/9798400235320.018
Summary
- Global inflation surged in 2022, driven by high gas price growth.
- The start of the war in Ukraine led to strong inflationary pressures in the euro area (EA) because of the region’s significant exposure to Russian gas.
- The price shock has been particularly strong in the Netherlands, largely due to the larger share of gas in the energy mix compared to other peers, making the country vulnerable to changing market conditions.
Major drivers and dynamics
- Energy and gas prices:
- High gas price growth was a primary driver of the global inflation surge in 2022.
- The Netherlands experienced a particularly strong price shock because of a larger share of gas on the energy mix.
- External shock transmission:
- The war in Ukraine, with Russia as a key supplier of energy products, transmitted strong inflationary pressures to the euro area.
- Inflation composition and labor dynamics (topics covered):
- Consumer prices, core inflation composition, energy pass-through.
- Wages, collective bargaining, profits.
- Phillips curve specification and inflation methodology.
Risk of wage-price spiral
- The paper examines the risk of a wage-price spiral in the Netherlands in the context of:
- Elevated inflation driven by energy price shocks.
- Labor market and wage-setting dynamics (collective bargaining and wages noted among keywords).
Publication metadata and scope
- Authors:
- Saioa Armendariz
- Alla Myrvoda
- Date: March 13, 2023
- Series: Selected Issues Paper No. 2023/021
- Issue: 021
- Volume: 2023
- Pages: 30
- DOI: https://doi.org/10.5089/9798400235320.018
- Stock No: SIPEA2023021
- ISBN: 9798400235320
- ISSN: 2958-7875
Subjects and keywords
- Subject: Consumer prices, Energy prices, Fuel prices, Inflation, International organization, Labor, Monetary policy, Prices, Wages
- Keywords: collective bargaining, Consumer prices, core inflation composition, energy, energy mix, energy pass-through, Energy prices, Fuel prices, Global, I. Phillips Curve specification, Inflation, inflation development, inflation differential, inflation methodology, Phillips curve, profits, Wage-Price spiral, wages
Source: Dutch Inflation: Developments, Drivers, and the Risk of Wage-Price Spiral: NETHERLANDS, Selected Issues Papers, Saioa Armendariz and Alla Myrvoda, March 13, 2023.
Content in this bundle
- 1. Dutch Inflation Developments