Finally, we supplement our econometric analysis by examining the development of the cost factors of production and their impact on the GDP deflator adjusted for imports. The current phase of inflation has been both supply-driven and profit-led.

When the sample is discriminated between Industry and Services, the econometric model performs better for both sectors. This indicates that the Eichner-based pricing model becomes more robust when the structural dimension is taken into account.

When firms engage in a deleveraging process the explanatory power of the cost-plus pricing framework somehow weakens, as firms are not willing to take up more debt.

Our findings indicate that the Greek economy suffers from a weak productive structure, which allows a large pass through from intermediate inputs to output prices. The productive structure has been weakened significantly since the austerity measures that took place in the 2010′s.

In order to gain further insights we divide the sample with respect to both its time and cross-section dimensions. In turn, we apply two different panel estimation techniques to each sample. Results for each sample are almost identical in all panel estimation approaches.

Using sectoral data for the period 1995–2023, we apply this model to the Greek economy so as to investigate the root causes of the current inflation episode, but also to assess the structural effects of internal devaluation that was implemented during the past decade.

we draw on post-Keynesian price theory to extend the standard markup pricing formula within the context of conflict inflation. We develop a pricing framework that captures the pass through of profit margin, , net indirect taxes, wage and material costs on output prices

Followed by brilliant work by @mnikiforos.bsky.social @cpierros.bsky.social & others on the incredible proliferation of the food/accommodation sector in Greece after the crisis, its contradictions & consequences that further undermine talk of “recovery” or expressed goals of the structural reforms.

I'm trying to figure out how the argument 'margins responded to direct costs, not to markups' plays out in this figure, while inflation is easing off.
That's why I'm asking whether there's deflation eg in energy prices or a drop of interest rates in the UK

With constant profit margins and stable prices one would expect the share to return to 22%, which is clearly not the case here. Is there some sort of deflation going on?

Done. Good luck