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Geopolitical risk and inflation: the role of energy markets

Published on the 24th of November 2025

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Post No. 420. Not all geopolitical shocks hit the economy in the same way – and that matters, especially for their transmission to inflation. This blog post, based on a recent Banque de France working paper, proposes a novel methodology to decompose geopolitical risk fluctuations into geopolitical energy shocks and geopolitical macro shocks.

Updated on the 24th of November 2025