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

    Email:  miles.parker@bankofengland.co.uk

Auth-Page:  https://ssrn.com/author=1051383

 

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