Inflation Dynamics in the CEMAC Region

Author/Editor:

Marcos Poplawski-Ribeiro ; Darlena Tartari Schwegler ; Carlos Caceres

Publication Date:

October 1, 2011

Electronic Access:

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Summary:

This paper analyses inflation dynamics in the Central African Economic and Monetary Community (CEMAC) using a constructed dataset for country-specific commodity price indices and panel cointegrated vector autoregressive (VAR) models. Imported commodity price shocks are significant in explaining inflation in the region. Governments are another driving force of inflation dynamics mainly through controlled prices and the role of capital expenditure in domestic activity. In most CEMAC countries, the largest effect of global food and fuel prices occurs after four or five quarters in noncore inflation and then decays substantially over time. Second-round effects are significant only in Cameroon and to a lesser extent in the Republic of Congo.

Series:

Working Paper No. 11/232

Subject:

English

Publication Date:

October 1, 2011

ISBN/ISSN:

9781463921965/1018-5941

Stock No:

WPIEA2011232

Format:

Paper

Pages:

29

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