Pass-through of external shocks along the pricing chain: A panel estimation approach for the euro area

Variable

Description

Source

PPI

Producer price indices for
energy, intermediate and
consumer goods prices
(index 2000=100)

Eurostat

HICP

Harmonised consumer price
indices for processed food,
non-energy industrial goods,
services and overall prices
excluding unprocessed food
and energy (index 2005 =
100)

Eurostat

Exchange rate

Nominal effective exchange
rate of the national
currency/euro, narrow group
of     countries      (index

2000=100)

BIS

Commodity prices

Commodity price indices for
energy, food and tropical
beverages, and industrial raw
materials, in USD, weighted
according euro area imports
(index 2000=100)

HWWI

Output gap

Difference between real GPD
and potential output (derived
with an HP filter, smoothing
parameter 1600)

Own calculation based on
Eurostat data

Unit labour costs

Total unit labour costs, i.e.
compensation per employee
divided by value added per
person employed (index
2000=100)

Eurostat

VAT

Standard value added tax rate
applied in the Member States
of the euro area

European Commission

Energy tax

Special excise duty on
unleaded gasoline in national
currency per litre, used as a
proxy for total energy tax
levy

International Energy Agency

Extra-openness

Extra-euro area trade
openness, ratio between real
extra imports of each country
and real GDP

Own calculation based on
Eurostat data