Central banks warn inflation may be driven by events abroad

London

CENTRAL bankers are realising that what happens abroad matters more than ever to inflation at home.

In the past month, policymakers from Ottawa to London have used speeches to highlight how their local inflation rates may be driven by events outside their control, complicating their ability to set the right monetary policy.

"There is evidence that fluctuations in global inflation account for a large and growing share of t…