IMF Staff Country Reports

Cross-Country Report on Inflation: Selected Issues

July 14, 2015

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Cross-Country Report on Inflation: Selected Issues, (USA: International Monetary Fund, 2015) accessed September 19, 2024

Summary

This Selected Issues paper examines the causes and drivers of low inflation in European inflation targeting countries outside the euro area, focusing on the Czech Republic, Poland, Sweden, and Switzerland. It estimates the effects on inflation from the output gap and external factors, including oil price changes, nominal effective exchange rate (NEER) fluctuations, and euro area inflation spillovers. It is observed that external factors have been significant drivers of low inflation recently, though their contributions to inflation and the channels through which they operate vary across countries. Policy responses and options are also discussed, taking into account country-specific circumstances.

Subject: Central bank policy rate, Exchange rates, Financial services, Foreign exchange, Inflation, Oil prices, Output gap, Prices, Production

Keywords: Area inflation spillover, Central bank, Central bank policy rate, CPI inflation response, CR, Euro area inflation spillover, Exchange rates, Global, Inflation, Inflation expectation, Inflation falling, Inflation fluctuation, Inflation objective, Inflation response, Inflation shock, Inflation spillover, Inflation targeters, Inflation tolerance band, ISCR, Low inflation, Medium-term inflation expectation, Noncore inflation, Oil prices, Output gap, Protracted inflation shock

Publication Details

  • Pages:

    39

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

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  • Series:

    Country Report No. 2015/184

  • Stock No:

    1EUREA2015001

  • ISBN:

    9781513525464

  • ISSN:

    1934-7685