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

Davide Furceri, Prakash Loungani, John Simon and Susan Wachter

No 2015/133, IMF Working Papers from International Monetary Fund

Abstract: 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.

Keywords: WP; inflation expectation; food inflation; inflation; food prices; pass-through; headline consumer price index; inflation surprise; price inflation; inflation experience; Commodity price shocks; Consumer price indexes; Consumption; Global (search for similar items in EconPapers)
Pages: 34
Date: 2015-06-24
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=43024 (application/pdf)

Related works:
Journal Article: Global food prices and domestic inflation: some cross-country evidence (2016)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2015/133

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().