French prices half as sensitive to oil as in 2016 – BdF blog
Lower household fuel use and less oil-intensive production reduce pass-through to consumers
A rise in the price of oil now lifts French inflation by roughly half as much as it would have done a decade ago, researchers from the Banque de France have said.
In a blog post, published on October 15, the authors use an accounting-based estimate to conclude that a €10 rise in the oil price now increases French consumer prices by 0.3–0.4%, down from around 0.6% in 2016.
Nicolas Châtelais, Yannick Kalantzis and Youssef Ulgazi argue that the lower sensitivity of consumer prices to oil can be
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