A inflacao tem caido em todo o mundo - World Bank

March 2019. 486 pages. English Version. Paperback. ISBN: 978-1-4648-1375-7. Price: $55 View PDFhttp://t.newsletterext.worldbank.org/r/?id=h342fc9d,1e3d924,1e3ed34 Now Available! This is the first comprehensive study in the context of EMDEs (Emerging and Developing Economies) that covers, in one consistent framework, the evolution and global and domestic drivers of inflation, the role of expectations, exchange rate pass-through and policy implications. In addition, the report analyzes inflation and monetary policy related challenges in LICs (Low Income Countries). The report documents three major findings: In First, EMDE disinflation over the past four decades was to a significant degree a result of favorable external developments, pointing to the risk of rising EMDE inflation if global inflation were to increase. In particular, the decline in EMDE inflation has been supported by broad-based global disinflation amid rapid international trade and financial integration and the disruption caused by the global financial crisis.

Evolution of inflation

Source: Haver Analytics, ILOSTAT, IMF International Financial Statistics and World Economic Outlook databases, OECDstat, UNdata, World Bank. A.Median headline and core year-on-year inflation for 41 economies, including 16 EMDEs (see details in Database Annex). B.Median year-on-year consumer price inflation for 29 advanced economies and 123 EMDE (including 28 LICs). C.Solid line shows median year-on-year headline inflation and dotted lines refer to interquartile range, based on 28 LICs.

Second, inflation expectations continue to be less well-anchored in EMDEs than in advanced economies, although a move to inflation targeting and better fiscal frameworks has helped strengthen monetary policy credibility. Lower monetary policy credibility and exchange rate flexibility have also been associated with higher pass-through of exchange rate shocks into domestic inflation in the event of global shocks, which have accounted for half of EMDE exchange rate variation. Third, in part because of poorly anchored inflation expectations, the transmission of global commodity price shocks to domestic LIC inflation (combined with unintended consequences of other government policies) can have material implications for poverty: the global food price spikes in 2010-11 tipped roughly 8 million people into poverty. http://t.newsletterext.worldbank.org/r/?id=h342fc9d,1e3d924,1e3ed34