Energy prices drive inflation interdependence – research

Oil rigs

Inflation interdependence in advanced economies is dependent on external factors such as energy prices, especially oil, says research published by the Bank of Spain.

In Inflation interdependence in advanced economies, Luis Álvarez, María Dolores Gadea and Ana Gómez-Loscos analyse inflation co-movements across a wide set of advanced economies.

“Surprisingly, core inflation synchronisation is fairly low, in clear contrast with energy prices, which are heavily dependent on oil global markets,”

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