Global Food Prices and Domestic Inflation: Some Cross-Country Evidence
June 24, 2015
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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.
Subject: Commodity price shocks, Consumer price indexes, Consumption, Food prices, Inflation, National accounts, Prices
Keywords: Commodity price shocks, Consumer price indexes, Consumption, food inflation, food prices, Global, headline consumer price index, inflation, inflation expectation, inflation experience, inflation surprise, pass-through, price inflation, WP
Pages:
34
Volume:
2015
DOI:
Issue:
133
Series:
Working Paper No. 2015/133
Stock No:
WPIEA2015133
ISBN:
9781513542973
ISSN:
1018-5941
