Inflation Dynamics in the CEMAC Region

By Marcos Poplawski Ribeiro, Darlena Tartari Schwegler, Carlos Caceres

October 1, 2011

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Marcos Poplawski Ribeiro, Darlena Tartari Schwegler, and Carlos Caceres. Inflation Dynamics in the CEMAC Region, (USA: International Monetary Fund, 2011) accessed December 22, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This paper analyses inflation dynamics in the Central African Economic and Monetary Community (CEMAC) using a constructed dataset for country-specific commodity price indices and panel cointegrated vector autoregressive (VAR) models. Imported commodity price shocks are significant in explaining inflation in the region. Governments are another driving force of inflation dynamics mainly through controlled prices and the role of capital expenditure in domestic activity. In most CEMAC countries, the largest effect of global food and fuel prices occurs after four or five quarters in noncore inflation and then decays substantially over time. Second-round effects are significant only in Cameroon and to a lesser extent in the Republic of Congo.

Subject: Commodity prices, Consumer price indexes, Energy prices, Food prices, Inflation, Prices

Keywords: Cameroon, CEMAC country, CEMAC region, Commodity prices, Consumer price indexes, Energy prices, Food price inflation, Food prices, Global, Inflation, Inflation dynamics, Noncore CPI index, Noncore inflation, Noncore inflation variability, Pass-through, Price, WP

Publication Details

Pages:

29
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2011/232
Stock No:

WPIEA2011232
ISBN:

9781463921965
ISSN:

1018-5941

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