This note examines Malaysia's inflation dynamics as influenced by changes in the policy environment and economic structure. In particular, it highlights the growing role of domestic demand, increased integration with the global economy, and the policy reforms that are shifting the economy...

This note identifies supply factors, particularly the exchange rate, as key drivers of inflation in South Africa. Demand factors play a negligible role, with a flat Phillips curve apparent since the inception of the country's inflation targeting regime. The Phillips curve flattened further with...

This country note discusses measures of inflation used in monetary policy formulation in Singapore, and assesses the relative influence of global and regional factors in determining domestic inflation dynamics. It is found that the regional factor has grow n in importance as a source of external...

This paper discusses the role of inflation expectations in the inflation dynamics of the Philippines since its adoption of inflation targeting in 2002. It places a particular focus on the post-crisis period. A key finding is that agents have become more forwardlooking with the adoption of...

This note presents preliminary evidence of recent structural changes to inflation dynamics in Korea, and sets out some possible causes and policy implications. First, the estimated Phillips curve changed significantly during 2011–12, which helps to better explain the prolonged low inflation in...

Issues of inflation measurement are fundamental to the conduct of monetary policy. Price indices form the foundation of central bank policy frameworks around the world. They serve as guides to decision-making, as well as providing the primary mechanism for holding independent policymakers...

Acting in parallel with changes in Thailand's inflation dynamics, the fall in inflation and inflation variability is a worldwide phenomenon that has coincided with accelerating globalisation. This paper explains that global factors have played an important role in changing the dynamics of...

Indonesia has been experiencing relatively low and stable inflation for the last five years. Currently, inflation has switched to a low inflation regime, thanks mainly to better anchored inflation expectations owing to the more credible inflation targeting framework (ITF) adopted in July 2005....

Empirical evidence following conventional tests suggests that inflation expectations in Colombia might not be rational, although the period of disinflation included in the sample makes it difficult to verify this conclusion. Inflation expectations display close ties with observed past and...

Inflation dynamics in Brazil are high and volatile. This short paper seeks to shed some light on the features of inflation in Brazil and provides a non-exhaustive list, in the way of a primer, of factors that are especially important. It also offers some suggestions for how monetary policy could...