Global inflation: the role of food, housing and energy prices

Release date
04/05/2016
Reference
DP2016/05
Author
Miles Parker
Supplementary file
Published as

Parker, Miles (2018). ‘How global is “global inflation”?’, Journal of Macroeconomics, Elsevier, Volume 58, Pages 174-197, DOI: https://doi.org/10.1016/j.jmacro.2018.09.003.

ISSN
1177-7567
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.