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

35 Pages Posted: 21 Jul 2015

See all articles by Davide Furceri

Davide Furceri

International Monetary Fund (IMF)

Prakash Loungani

International Monetary Fund (IMF)

John A. Simon

Reserve Bank of Australia - Economic Research

Susan M. Wachter

University of Pennsylvania - Wharton School, Department of Real Estate ; University of Pennsylvania - Finance Department

Date Written: June 2015

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: Food prices, External shocks, Inflation, Developed countries, Emerging markets, Cross country analysis, pass-through, economies, food price inflation, advanced economies, monetary policy, money, consumption, inflation expectations, domestic inflation

JEL Classification: E31, E50, E52, E60, F41

Suggested Citation

Furceri, Davide and Loungani, Prakash and Simon, John A. and Wachter, Susan M., Global Food Prices and Domestic Inflation: Some Cross-Country Evidence (June 2015). IMF Working Paper No. 15/133. Available at SSRN: https://ssrn.com/abstract=2633918

Davide Furceri (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Prakash Loungani

International Monetary Fund (IMF) ( email )

700 19th Street NW
Washington, DC 20431
United States
202-623-7043 (Phone)
202-623-4740 (Fax)

John A. Simon

Reserve Bank of Australia - Economic Research ( email )

GPO Box 3947
Sydney, NSW 2001
Australia

Susan M. Wachter

University of Pennsylvania - Wharton School, Department of Real Estate ( email )

The Wharton School
3620 Locust Walk
Philadelphia, PA 19104-6330
United States
215-898-6355 (Phone)

HOME PAGE: http://real.wharton.upenn.edu/~wachter/index.html

University of Pennsylvania - Finance Department ( email )

The Wharton School
3620 Locust Walk
Philadelphia, PA 19104
United States

HOME PAGE: http://real.wharton.upenn.edu/~wachter/index.html

Register to save articles to
your library

Register

Paper statistics

Downloads
41
Abstract Views
656
PlumX Metrics