What Drives U.S. Import Price Inflation?

Mary Amiti; Oleg Itskhoki; David Weinstein

doi:10.3386/w32133

What Drives U.S. Import Price Inflation?

Mary Amiti, Oleg Itskhoki & David Weinstein

Working Paper 32133

DOI 10.3386/w32133

Issue Date February 2024

Inflation has risen sharply in many countries since the COVID-19 outbreak. Economists have debated the underlying causes. In this paper, we examine the drivers of the global import price inflation, which peaked at approximately 11 percent a year. We find that a common global component closely tracks movements in aggregate U.S. import prices until late 2022. Afterward, idiosyncratic U.S. demand shocks started to dominate.

We would like to thank Sean Fulmer for excellent research assistance. The views expressed in this paper are those of the authors and do not necessarily reflect the position of the Federal Reserve Bank of New York or the Federal Reserve System or any other institution to which the authors are affiliated. This draft was prepared for the American Economic Association Papers and Proceedings. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.
Copy Citation

Mary Amiti, Oleg Itskhoki, and David Weinstein, "What Drives U.S. Import Price Inflation?," NBER Working Paper 32133 (2024), https://doi.org/10.3386/w32133.

What Drives U.S. Import Price Inflation?

Non-Technical Summaries

Related

Topics

Programs

Mentioned in the News

More from the NBER