Friday, August 4, 2017
Global factors and inflation
"Global Inflation: The Role of Food, Housing and Energy Prices"
ECB Working Paper No. 2024
Contact: MILES PARKER
Reserve Bank of New Zealand
Full Text: https://ssrn.com/abstract=2923137
ABSTRACT: This paper studies the role of global factors in causing common movements in consumer price inflation, with particular focus on the food, housing and energy sub-indices. It uses a comprehensive dataset of 223 countries and territories collected from national and international sources. Global factors explain a large share of the variance of national inflation rates for advanced countries ─ and more generally those with greater GDP per capita, financial development and central bank transparency ─ but not for middle and low income countries.
Common factors explain a large share of the variance in food and energy prices.
Book, pp. 29-32