“…Moreover, Aisen and Veiga (2006) document that a higher degree of political instability is associated with a higher level of inflation. Our finding also supports Alper, Hobdari, and Uppal (2016), Walsh (2011) and Caceres, Poplawski-Ribeiro, and Tartari (2013) who emphasise the influences of food inflation. Second, the other group, including shocks to real activities, nominal effective exchange rate, and monetary variables, explains about 55 per cent of inflation variations.…”