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Forces Driving Inflation in the New EU10 Members

Forces Driving Inflation in the New EU10 Members by Emil Stavrev
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The paper analyzes the forces driving inflation in the new EU10 member countries. A significant part of headline inflation in these countries is due to common factors, such as price level convergence and EU integration. However, idiosyncratic factors have also played a role in the inflation process. These factors are related to the country-specific financial conditions, pass-through from foreign prices, and demand-supply situation in each country, although administered price adjustments and increases of indirect taxes associated with EU accession are also likely to have played a role.
International Monetary Fund; March 2009
18 pages; ISBN 9781452788418
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Title: Forces Driving Inflation in the New EU10 Members
Author: Emil Stavrev