Households in Germany overestimate the inflationary effects of oil and gas supply shocks. This is shown in a new CESifo working paper by Maximilian Boeck, Anja Bauer, and Jonas Dovern, which examines the effects of such shocks on the entire distribution of inflation expectations. Oil supply shocks also increase disagreement among households about future inflation. The full study is available at the following link: https://doi.org/10.65864/2g64sh76k0.
New Study on Energy Supply Shocks and Inflation Expectations
