Energy expenditures and CPI inflation in 2022: Inflation was even higher than we thought

Chowdhury, Aftab and Dixon, Huw ORCID: https://orcid.org/0000-0002-9875-8965 2025. Energy expenditures and CPI inflation in 2022: Inflation was even higher than we thought. Energy Economics 145 , 108482. 10.1016/j.eneco.2025.108482

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Abstract

Following the sudden increase in the energy price in the second quarter of 2022 caused by the Russia-Ukraine war, inelastic demand generated significant changes in household expenditure shares for energy (particularly in electricity, gas, and other fuels and in fuels and lubricants). These produced a significant downward bias in the official CPI inflation rate for energy and in the official CPI inflation rate for all items in the UK. The downward bias was significantly higher in the European Union in 2022, specifically in Belgium, Estonia, Ireland, Greece, Italy, Cyprus, Lithuania, the Netherlands, Romania, and Slovenia.

Item Type:	Article
Date Type:	Publication
Status:	Published
Schools:	Schools > Business (Including Economics)
Publisher:	Elsevier
ISSN:	0140-9883
Date of First Compliant Deposit:	7 April 2025
Date of Acceptance:	30 March 2025
Last Modified:	30 Apr 2025 09:01
URI:	https://orca.cardiff.ac.uk/id/eprint/177454

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