Global Food Prices and Domestic Inflation : Some Cross-Country Evidence

Author/Editor:

Davide Furceri ; Prakash Loungani ; John Simon ; Susan Wachter

Publication Date:

June 24, 2015

Electronic Access:

Download PDF. Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This paper provides a broad brush look at the impact of fluctuations in global food prices on domestic inflation in a large group of countries. For advanced economies, we find that these fluctuations have played a significant role over the period from 1960 to the present, but the impact has declined over time and become less persistent. We also find that the more recent global food price shocks occurred in the 2000s had a much bigger impact on emerging than on advanced economies. This larger impact could reflect the larger share of food in the consumption baskets in emerging economies on average than in advanced economies, and less anchored inflation expectations in emerging economies than in advanced economies.

Series:

Working Paper No. 15/133

Subject:

English

Publication Date:

June 24, 2015

ISBN/ISSN:

9781513542973/1018-5941

Stock No:

WPIEA2015133

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

34

Please address any questions about this title to publications@imf.org