Globalisation weakening central banks' control over inflation, study finds.
Globalisation has led to lower inflation rates in advanced countries. This is because of increased trade with low-cost countries, which lowers the prices of imported goods. Global competition has also reduced the pricing power of domestic companies. The integration of workers into the global labor market has weakened the bargaining power of domestic workers. Overall, globalisation has had a positive but limited impact on reducing inflation since the 1990s.