Please use this identifier to cite or link to this item:
https://hdl.handle.net/20.500.14279/27029
Title: | The relationship between shipping freight rates and inflation in the Euro Area | Authors: | Michail, Nektarios A. Melas, Konstantinos D. Cleanthous, Lena |
Major Field of Science: | Social Sciences | Field Category: | Economics and Business | Keywords: | Inflation;Shipping;Freight rates;Supply shock | Issue Date: | Dec-2022 | Source: | International Economics, 2022, vol. 172, pp. 40-49 | Volume: | 172 | Journal: | International Economics | Abstract: | Consumer inflation across the globe has rebounded during 2021 due to supply-side disruptions, one of which is the increase in freight costs. To elaborate on the relationship between inflation and shipping costs, we employ a Vector Error Correction Model (VECM) and use disaggregated monthly data from January 2009 to August 2021, using both constant tax and the standard price indices. Following a shock in freight rates, the most hard-hit sectors appear to be garments and major household appliances, items that have traditionally been manufactured outside the euro area. In addition, using a threshold regression methodology, we show that when freight rates rise more than $1300-$1500 per day, the sensitivity of inflation to freight changes increases. | URI: | https://hdl.handle.net/20.500.14279/27029 | ISSN: | 21107017 | DOI: | 10.1016/j.inteco.2022.08.004 | Rights: | © CEPII (Centre d’Etudes Prospectives et d’Informations Internationales) | Type: | Article | Affiliation : | Central Bank of Cyprus Cyprus University of Technology University of Western Macedonia Metropolitan College |
Publication Type: | Peer Reviewed |
Appears in Collections: | Άρθρα/Articles |
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