The quality of institutions and trade openness affect how stable prices are in different countries. Good institutions like political stability and rule of law help reduce inflation volatility in developed countries, while government effectiveness can increase it in developing countries. Trade openness can lower inflation volatility in developed countries but raise it in developing ones. A stable exchange rate can also help control inflation volatility. Central banks should focus on keeping inflation rates stable in the long run, taking into account the quality of institutions in each country.