2. Europe: Coping with High Commodity Prices
Author:
International Monetary Fund. European Dept.
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Language:
English
Print Publication Date:
28 Oct 2008
Keywords:
REO; commodity; price; economy; inflation expectation; rising prices; price inflation; inflation equation; oil price inflation; Inflation; Commodity prices; Food prices; Energy prices; Europe; Global

Abstract

The surge in commodity prices has boosted headline inflation across Europe. Analysis in this chapter focuses on the risks to inflation. Though some rigidities remain, improved labor market flexibility, the weakening economy, and strong monetary policy credibility should help limit second-round effects in the advanced economies. The risks of spillovers of price pressures to a broad range of consumption goods are greater in the emerging economies, where food and fuel account for a substantial share of consumption.

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Cover Regional Economic Outlook, October 2008, Euope
Regional Economic Outlook, October 2008, Euope
Dealing with Shocks
ISBN:
9781589067608
ISSN:
2071-4157
Publication Date:
28 Oct 2008
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781589067608.086
Pages:
96

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