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dc.titleInflation Dynamics in Latin America and the Caribbean
dc.contributor.authorAyres, João
dc.contributor.authorGalindo, Arturo
dc.contributor.authorNovoa, Santiago
dc.contributor.authorNuguer, Victoria
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageLatin America and the Caribbean
dc.date.available2023-03-08T14:54:07
dc.date.issue2023-02-22T00:02:00
dc.description.abstractWe perform a principal component analysis of the inflation dynamics in Latin America and the Caribbean to assess the recent surge in inflation across the region. The principal component accounts for 57% of the variation in inflation in the last 17 years, and it is highly correlated to the principal components of inflation of country groups outside the region, especially post-COVID-19. Global factors such as US inflation, commodity prices, and international shipping costs can account for at least one-third of the variation of the principal component. The analysis implies that external factors are major drivers of the surge in inflation in the region post-COVID-19 lockdowns.
dc.format.extent14
dc.identifier.doihttp://dx.doi.org/10.18235/0004751
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Inflation-Dynamics-in-Latin-America-and-the-Caribbean.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectInflation
dc.subjectDebtor Finance
dc.subjectCommodity Price
dc.subjectCoronavirus
dc.subjectFreight Logistic
dc.subjectEmerging Market
dc.subjectPandemics
dc.subject.jelcodeE31 - Price Level • Inflation • Deflation
dc.subject.keywordsInflation;Principal component;COVID-19;Emerging economies
dc.typeTechnical Notes
idb.identifier.pubnumberIDB-TN-02653
idb.operationRG-K1098
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