The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
Inflation persistence is sometimes defined as the tendency for price shocks to push the inflation rate away from its steady state-including an inflation target-for a prolonged period. Persistence is important because it affects the output costs of lowering inflation back to the target, often described as the 'sacrifice ratio'. In this paper I use inflation expectations to provide a comparison of inflation persistence in Brazil with a sample of inflation targeting (IT) countries. This approach suggests that inflation persistence increased in Brazil through early 2013, in contrast to many of its IT peers, mainly due to 'upward' persistence. The 2013 rate hiking cycle may have contributed to some recent decline in persistence.