Hela Mrabet and Jack Page

The rise in commodity prices after Russia’s invasion of Ukraine had a direct and noticeable impact on consumers’ bills for energy and food. But firms also felt the brunt of higher costs. How did firms pass on these cost shocks through the supply chain and all the way onto consumer prices? How much and how quickly can firms pass through such large cost shocks? In this blog post, we combine information from Supply-Use tables with a rich industry-level data set on input and output price indices to shed light on these questions.

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