Geghetsik Afunts, Misina Cato, Susanne Helmschrott, Tobias Schmidt, 20 April 2022

Russia’s invasion of Ukraine will likely pose new challenges to the global economic recovery by affecting energy prices and inflation rates. This column uses a quasi-experimental analysis to document the impact on inflation expectations of consumers in Germany. The authors find that both short-term and long-term inflation expectations increased as an immediate result of the invasion. This increase can partially be attributed to consumers’ fear of soaring energy prices.


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