Download or read book Forces Driving Inflation in the New EU10 Members written by Emil Stavrev and published by INTERNATIONAL MONETARY FUND. This book was released on 2009-03-01 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.