Intrinsic Inflation Persistence in a Developing Country

Muhammad Hanif, Muhammad Jahanzeb Malik () and Javed Iqbal

SBP Research Bulletin, 2016, vol. 12, 19-42

Abstract: Persistence in inflation is important because it dictates the costs associated with monetary policy actions. We conduct a detailed analysis of the degree of intrinsic inflation persistence in Pakistan using aggregate price index, group level price indices, and individual commodity prices. Barring the case of food basket, inflation is found to be (significantly) persistent in Pakistan. As against the overall inflation, the degree of persistence is found to be very high for core inflation. These results are robust to structural shocks consideration and hold at aggregate as well as at commodity level analyses.

Keywords: Persistence; Inflation; Food Inflation; Core Inflation (search for similar items in EconPapers)
JEL-codes: E31 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sbp.org.pk/research/bulletin/2016/Vol-1 ... loping%20Country.pdf

Related works:
Working Paper: Intrinsic Inflation Persistence in a Developing Country (2012)
Working Paper: Intrinsic Inflation Persistence in a Developing Country (2012)
Working Paper: Intrinsic Inflation Persistence in a Developing Country (2012)
Working Paper: Intrinsic Inflation Persistence in a Developing Country (2012)
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:sbp:journl:71

Access Statistics for this article

More articles in SBP Research Bulletin from State Bank of Pakistan, Research Department Contact information at EDIRC.
Bibliographic data for series maintained by Faisal Saleem ().