- 10.2873/301426, 978-92-76-56634-2
- Part of collection
- Publication date
- 22 September 2022
- Paolo Pasimeni
This paper presents a decomposition of producer prices inflation between supply and demand factors. It finds that 80% of the current price pressure is due to supply shortages and only 20% to demand expansion. If supply disruptions are the main cause, then, promoting the right investment to repair disruptions along supply chains may be more urgent than the cooling down of demand.