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



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

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