BOE paper: inflation co-movement linked to globalisation
A study into the co-movement of inflation in cross-border markets by the Bank of England finds that category-specific, or product specific, factors account for a large part of the co-movement in the prices of goods in international commodity markets, but less so in other traded goods, explaining the added downward pressure in inflation experienced by industrialised economies in recent months.
The paper uses a dataset of 28 matched product category price indices for 14 advanced economies between
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