Commodity Prices and Inflation Dynamics

12 Pages Posted: 22 Jul 2012

See all articles by Stephen G. Cecchetti

Stephen G. Cecchetti

Brandeis International Business School; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Richhild Moessner

Bank for International Settlements (BIS)

Date Written: December 8, 2008

Abstract

Commodity prices rose strongly in recent years until mid-2008, driving inflation up worldwide. This feature investigates aspects of the impact of the rise in food and energy prices on headline inflation and its dynamics using a dataset for CPI inflation and its food and energy components that includes the major advanced and emerging economies. Our evidence suggests that in recent years core inflation has not tended to revert to headline, which suggests that higher commodity prices have generally not spawned strong second-round effects on inflation.

JEL Classification: E31, E52

Suggested Citation

Cecchetti, Stephen G. and Moessner, Richhild, Commodity Prices and Inflation Dynamics (December 8, 2008). BIS Quarterly Review, pp. 55-66, December 2008. Available at SSRN: https://ssrn.com/abstract=1517224

Stephen G. Cecchetti (Contact Author)

Brandeis International Business School ( email )

415 South Street
Waltham, MA 02453
United States

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States
212-720-8629 (Phone)
212-720-2630 (Fax)

Centre for Economic Policy Research (CEPR) ( email )

London
United Kingdom

Richhild Moessner

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

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