Although short-run swings in firms' energy costs might be absorbed in their profit margins, a persistent increase is likely to be fully passed on to the consumer. Such cost pressures could potentially feed back into wages as workers strive to maintain their real incomes. The behavior of inflation expectations is the key to such a feedback process.
4  Some of the more notable examples include Germany, Hungary, and Austria after World War I. Hungary and Greece experienced hyperinflations after World War II. More recently, countries from South and Central America have had episodes of hyperinflation, including Argentina, Bolivia, Brazil, Peru, Mexico, and Nicaragua. Zimbabwe is the most recent example, and its hyperinflation episode ended with a currency reform in 2008.