TY - BOOK ID - 133365666 TI - Shipping Costs and Inflation AU - Carriere-Swallow, Yan. AU - Deb, Pragyan. AU - Furceri, Davide. AU - Jimenez, Daniel. AU - Ostry, Jonathan D. PY - 2022 PB - Washington, D.C. : International Monetary Fund, DB - UniCat KW - Macroeconomics KW - Economics: General KW - Inflation KW - Production and Operations Management KW - Price Level KW - Deflation KW - Prices, Business Fluctuations, and Cycles: Forecasting and Simulation KW - Energy and the Macroeconomy KW - Energy: Demand and Supply KW - Prices KW - Macroeconomics: Production KW - Macroeconomics: Consumption KW - Saving KW - Wealth KW - Economic & financial crises & disasters KW - Economics of specific sectors KW - Import prices KW - Oil prices KW - Output gap KW - Production KW - Producer prices KW - Currency crises KW - Informal sector KW - Economics KW - Imports KW - Economic theory KW - Consumption UR - https://www.unicat.be/uniCat?func=search&query=sysid:133365666 AB - The Covid-19 pandemic has disrupted global supply chains, leading to shipment delays and soaring shipping costs. We study the impact of shocks to global shipping costs—measured by the Baltic Dry Index (BDI)—on domestic prices for a large panel of countries during the period 1992-2021. We find that spikes in the BDI are followed by sizable and statistically significant increases in import prices, PPI, headline, and core inflation, as well as inflation expectations. The impact is similar in magnitude but more persistent than for shocks to global oil and food prices. The effects are more muted in countries where imports make up a smaller share of domestic consumption, and those with inflation targeting regimes and better anchored inflation expectations. The results are robust to several checks, including an instrumental variables approach in which we instrument changes in shipping costs with an indicator of closures of the Suez Canal. ER -