02164cas a2200301 a 4500 AALejournalIMF023176 230101c9999 xx r poo 0 0eng d 9798400218613 20.00 USD 1018-5941 BD-DhAAL BD-DhAAL Cevik, Serhan. Mind the Gap : City-Level Inflation Synchronization / Serhan Cevik. Washington, D.C. : International Monetary Fund, 2022. 1 online resource (17 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 The post-pandemic rise in consumer prices across the world has renewed interest in inflation dynamics after decades of global disinflation. This paper provides a spatial investigation of inflation synchronicity at the city level in Lithuania using disaggregated monthly data during the period 2000-2021. The empirical analysis provides strong evidence that (i) the co-movement of city-level inflation rates-estimated using the instantaneous quasi-correlation approach-is significantly weaker than the extent of synchronization suggested by the simple correlation analysis; (ii) there is substantial heterogeneity in the instantaneous quasi-correlation of inflation subcomponents between city pairs; and (iii) there are significant changes in the degree of city-level synchronization over time, reflecting important economic developments in history such as the global financial crisis, the adoption of euro, and the COVID-19 pandemic. Mode of access: Internet Estimation imf Single Equation Models imf Single Variables imf Spatial Models imf Treatment Effect Models imf IMF Working Papers; Working Paper ; No. 2022/166 Full text available on IMF https://elibrary.imf.org/openurl?genre=journal&issn=1018-5941&volume=2022&issue=166 IMF e-Library