COMMODITY PRICE AND INFLATION DYNAMICS: EVIDENCE FROM BRIICS

Syed Aun R. Rizvi and Sahminan Sahminan

Bulletin of Monetary Economics and Banking, 2020, vol. 23, issue 4, 485 - 500

Abstract: In this study, we use a commodity augmented Phillips curve to investigate the impact of global commodity prices on domestic inflation in Brazil, Russia, India, Indonesia, China, and South Africa. Oil and energy prices cause inflationary pressures in all countries, except Russia, where they cause deflationary pressures. In Indiaand Indonesia, global food prices are highly significant and positively related to inflation, while in South Africa precious metal prices impact inflation negatively. For policymakers, this study provides insights on the domestic adjustments required for inflation targeting in response to global commodity price volatility.

Keywords: Commodity prices; Inflation; BRIICS; Augmented Phillips curv (search for similar items in EconPapers)
JEL-codes: E31 E52 E58 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:idn:journl:v:23:y:2020:i:4b:p:485-500

DOI: 10.21098/bemp.v23i4.1418

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