02350cas a2200313 a 4500 AALejournalIMF022902 230101c9999 xx r poo 0 0eng d 20.00 USD 9798400210976 1018-5941 BD-DhAAL BD-DhAAL Lian, Weicheng. Inflation Dynamics in Advanced Economies : A Decomposition into Cyclical and Non-Cyclical Factors / Weicheng Lian, Andreas Freitag. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (35 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Inflation and unemployment rate were largely disconnected between 2000 and 2019 in advanced economies. We decompose core inflation into two parts based on the cyclical sensitivity of CPI components and document several salient facts: (i) both the cyclical and non-cyclical parts had surges across advaced economies in 2011, when unemployment rates had limited changes; (ii) the non-cyclical part had a downward trend between 2012 and 2019, which existed across countries, sectors, goods, and services; (iii) global indexes such as oil price, shipping costs, and a global supply chain pressure index do not explain the downward trend; and (iv) the cyclical part, after controlling for the impact of economic slack, also had a downward trend between 2012 and 2019. These patterns help disentangle competing explanations for the disconnect between inflation and unemployment rate. The approach has potential to help understand forces shaping price pressures during the pandemic and in the post-pandemic period ahead. Mode of access: Internet Business Fluctuations imf Deflation imf Inflation imf Price Level imf Prices, Business Fluctuations, and Cycles imf Freitag, Andreas.. IMF Working Papers; Working Paper ; No. 2022/091 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=091 IMF e-Library