The strong US dollar is another factor likely to keep inflation
down for the remainder of the year.
Different approaches can be reasonable because, with the available data, it can be difficult to distinguish a change in trend from a persistent deviation of inflation
from the trend.
In addition, looking ahead, these same models incorporating the short-term unemployment rate tend to project a higher path of inflation
than do models based on the overall rate.
The authors show that, when these two distinct pairs of forces are taken into account, the resulting composite model both tracks total inflation
and projects total inflation
more accurately than do models based on aggregate core inflation
--and they do so not only within the sample period selected but outside of that period as well.
The report said negligible external price pressures, due to lower commodity prices, a strong dollar and subdued inflation
among trading partners should offset any local inflationary pressures.
5% month on month increase in August inflation
to yield 5.
The effect of rising inflation
is negligible for the telecoms and IT sectors, as revenues in these sectors increase in line with costs.
Empirical literature on inflation
growth nexus is divided into two main strands.
The empirical evidence presented here indicates headline and core measures of inflation
are co-integrated, suggesting long-run co-movement.
It is highly plausible that, in their bid to get their financial sectors back to health and restore their economies back to growth, authorities stimulate demand beyond their economies' potential output levels and awaken the inflation
If you statistically look for an independent effect of money on policy beyond that of money's ability to forecast inflation
or output, you don't find it.
Oil prices are down and interest rates remain low, but inflation
is by no means conquered.