Study finds food prices impact Euro-Area inflation symmetrically, little asymmetry detected.
The article examines how changes in commodity prices affect food prices in the Euro Area and its major economies. The researchers investigate if food prices react differently to increases or decreases in commodity prices. They use two methods: a structural model to analyze shocks in commodity prices and predictive regressions to compare linear and nonlinear models. The study finds little evidence of asymmetries in how food prices respond to commodity price changes.