Why does an increase in oil prices have a smaller impact on inflation than in 2016?

Post No. 465. Using an accounting approach, we estimate that a EUR 10 increase in the price of a barrel of oil would now raise consumer prices by 0.3% to 0.4% in France and by 0.4% to 0.5% in the euro area, compared with 0.6% and 0.7% respectively in 2016. This lower sensitivity is due to a reduction in both the direct effects on fuel prices and the indirect effects passed on via production costs.