This paper examines the drivers of fluctuations in global inflation, defined as a common factor across monthly headline … consumer price index (CPI) inflation in G7 countries, over the past half-century. We estimate a Factor-Augmented Vector … in global inflation. Second, the contribution of global demand and oil price shocks increased over time, from 56 percent …

We analyze the evolution and drivers of inflation during the pandemic and the likely trajectory of inflation in the … near-term using an event study of inflation around global recessions and a factor-augmented vector auto-regression (FAVAR …) model. We report three main results. First, the decline in global inflation during the 2020 global recession was the most …