Energy constitutes an essential share of costs across any economy. The percentage of electricity in the overall energy consumption is steadily increasing. This increase, however, is not reflected correctly in the consumption basket relevant for measuring inflation and, therefore, for monetary policy formulation. We argue that the energy mix reflected in inflation should be revised in favour of electricity. We present an analysis of inflationary pressures across Europe and decompose the impact of energy categories on headline inflation. Building on the inflation expectations framework, this study examines the characteristics and magnitude of the current energy price dynamics and quantifies its share in the countries’ effective inflation. Our research also confirms a compelling insight into the country’s energy structure and inflationary pressures when a larger share of renewable electricity sources proves to be associated with lower inflation. Finally, we argue that the energy price shock cannot be viewed as a one-shot event as in the case of oil price shocks in the past. We draw recommendations for monetary policy formulation. The implication of renewable sources on inflation should be of interest to policymakers, especially in times of high, almost galloping inflation rates in some European countries, unstable fossil energy sources supply due to geopolitical instability, and climate crisis.
This paper sets out to explore the strength of the relationship between the proximity of a property to the city center and its price. Buyers are willing to pay extra for apartments or houses closer to the city center, but the extent of this willingness remains largely unexplored. Our research question is: How much does a minute of commuting time influence the price of an apartment in Prague? In other words, with every minute of commuting time, how much more is paid for a house or an apartment closer to the central business district (CBD)?Our analysis has found that on average, every minute of commuting time closer to the city center corresponds to an additional cost of CZK 43,390.45 for an average sized apartment in Prague. A regression analysis is graphically plotted in the Chart 1. We have also found that this relationship changes according to distance from the city center. For a commuting time of 1-20 minutes to the city center, the price increase is the highest: CZK 259,466.18 per minute. However, this figure is only CZK 55,809.01 for the interval of 21-40 minutes, and CZK 33,924.29 per minute for the interval of 41-55 minutes.
The aim of the paper is to analyse the development and the level of cost inflation pressures originating from the labour market in terms of the different levels of the Czech Republic. At first, we will mention several definitions of unit labour costs and the reasons for their examination and monitoring. Then we will select the concept of the nominal and real unit wage costs and data for the macro-level and mezzo-level in the Czech Republic. It is also evaluated the development of real unit wage costs indicator on individual levels of the Czech Republic and extent the wage inflation potential on them. Finally, we localize the first clues about the negative impact of wages on prices on the mezzo-level, which can be used for creating the prediction of the national economy in the near future.
This paper is focused on economic cycle on the labor market in the entire national economy of the Czech Republic and in particular in the construction industry of Czechia. Authors use indicators of price level development. Analysis applies methods of the Hodrick–Prescott filter, Kalman filter and Stochastic trend to improve the informative value and credibility of reached conclusions. Phases of economic cycle on the labor market can be verified by comparison with the actual development of unemployment and gross domestic product. Special attention is given to unstable periods on the labor market, and we focus on determining reasons for their existence, their duration and manifestation.The analysis revealed negative gaps in the period of economic transformation but there were periods with positive unemployment gaps in the years 2007 and 2008 too.We used the development in the last period to predict the development in the near future. This ad hoc estimate is compared with model estimate made on an extended time series up to the end of the year 2018.
The article provides an analysis of the development of NAIRU and the economic cycle in the labour market at the level of the economy and in selected sectors in the Czech Republic and Slovakia. The analysis focuses on estimation of the time-varying NAIRU with the use of the method of the stochastic trend. The difference between the estimated NAIRU values and the real unemployment rates is used for characterisation of the economic cycle in the labour market. The estimated phases of the cycle are compared with the development of the basic real economy indicators. Unstable periods on the labour market in the economy and in selected sectors of the two countries are localised. The identified leading indicators are used for prediction of the development in the following period.
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