Charting the upstream: An indicator for imported input goods prices
- Series:
- Staff Memo
- Number:
- 5/2024
Abstract
This Staff Memo presents an indicator used for monitoring and forecasting inflation at Norges Bank. The indicator is designed to capture international price impulses that impact the input costs of domestic firms. Our analysis indicates that the marked increase in the cost of imported intermediate goods over the last couple of years can account for parts of the rise in Norwegian CPI-inflation in the same period. The results suggest that changes to the price of products at early stages in the production chain can lead to changes in CPI, also making the indicator useful for forecasting.
Staff Memos present reports and documentation written by staff members and affiliates of Norges Bank, the central bank of Norway. Views and conclusions expressed in Staff Memos should not be taken to represent the views of Norges Bank.
ISSN 1504-2596 (online)