Thursday, January 27, 2011

Global food prices and inflation targeting

"Rising food prices once again pose central banks a tricky question. How far should they ignore food price inflation? This column suggests that food tends to have stronger predictive power on global inflation cycles than oil. The problem is more severe in emerging markets where consumption basket weights for food are two or three times larger than in rich nations. Central banks should pay close attention..."


at http://www.voxeu.org/index.php?q=node/6054

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