Emerging contemporary monetary policy issues in Africa: An application of wavelet and quantile techniques to climatic shocks on inflation

• DOI: 10.1371/journal.pone.0319797
• Publication Date: 2025-05-07T17:29:28Z
• Authors: Suleiman O. Mamman; Saralees Nadarajah; Jamilu Iliyasu; Mehboob Ul Hassan
• Keywords: Food Prices

Recently, the inflationary impacts of climate change shocks have emerged among key constraints to price and financial stability. In line with this development, some Central banks are incorporating risks in their surveillance activities. Thus, study examines asymmetric impact on food general consumer prices Algeria, Egypt, Nigeria, South Africa. The employs a panel quantile via moment’s method wavelet coherency analysis for monthly from 2000M01 2023M12. empirical results reveal that, first, there is dynamic interconnectedness between inflation. Secondly, show that an prices. However, magnitude direction depend prevailing regime. Finally, shows raise inflation uncertainty. Collectively, these findings imply sources pressures uncertainty, posing significant challenges central banks’ management. One implication countries will likely face extreme difficulty stabilising since monetary policy instruments mainly demand management, thus may be ineffective dealing shocks. findings, recommends should enhance strategies but considering potential risks.