Inflation in African Countries: Do Energy Shocks Also in the Dock?

Globalisation is characterized, on the one hand, by the interdependence of its main actors and, on the other hand, by the spread or expansion of the neoliberal economy, which by its nature is exposed to external shocks. These shocks have consequences for both developed and developing economies. The main objective of this study is to analyze the incidence of energy shocks on inflation in 31 African countries over the period 2000-2022. The Panel-Corrected Standard Error (PCSE) method and the Two-Stage Least Squares (2SLS) method were employed to achieve our objectives. The analyses revealed that energy price shocks are a significant explanatory factor for the level of inflation in Africa.