An Analysis on the Determinants of Global Inflation

Abstract

The volatilities observed in different markets have an impact on global inflation. The persistent upward trend in inflation forms the basis of economic challenges experienced in all countries.Therefore, especially considering recent developments and events, inflation stands out as one of the most researched topics. In this contextthis, this study analyzes the relationship between global inflation, global food price, Brent oil price, global energy prices, the global supply chain, and global geopolitical risks variables using monthly data from 2004:08 to 2023:10. In this analysis, the Dynamic Wavelet Correlation Analysis For Multivariate (WLMC) approach is employed to examine the dynamic correlation relationship between variables across time and frequency dimensions. Considering the findings from the study, it can be stated that strong correlation relationships among variables have been found after the year 2021 in all analyses. This suggests a stronger economic integration across different global markets, especially in recent years.