Breaking Bad : A Disaggregated Analysis of Inflation Inertia /

The post-pandemic rise in consumer prices across the world has renewed interest in inflation dynamics after decades of global disinflation. This paper contributes to the literature by providing a granular investigation of inflation persistence at the city level in Lithuania during the period 2000-20...

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Xehetasun bibliografikoak
Egile nagusia: Cevik, Serhan
Formatua: Aldizkaria
Hizkuntza:English
Argitaratua: Washington, D.C. : International Monetary Fund, 2022.
Saila:IMF Working Papers; Working Paper ; No. 2022/167
Gaiak:
Sarrera elektronikoa:Full text available on IMF
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520 3 |a The post-pandemic rise in consumer prices across the world has renewed interest in inflation dynamics after decades of global disinflation. This paper contributes to the literature by providing a granular investigation of inflation persistence at the city level in Lithuania during the period 2000-2021, as well as a comparison of inflation persistence at the country level vis-a vis the eurozone over the same period. Using disaggregate monthly data collected in five major cities, the empirical analysis finds a mixed and ambiguous picture of inflation persistence. While the headline inflation does not appear to exhibit a high degree of persistence, most consumption categories have significant persistence. As a result, shocks may not remain transitory and instead have persistent effects that could spillover across subcomponents depending on the size of the shock. 
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