Global inflation dynamics in the post-crisis period: What explains the puzzles?

•Inflation dynamics after the crisis are puzzling in a sample of 25 advanced countries.•Using a factor model, I construct a measure of global inflation from 1995Q1 to 2013Q3.•Household inflation expectations help restoring the associated global Phillips curve.

Using a factor model, I estimate a global Phillips curve for 25 advanced countries over 1995Q1-2013Q3. I find that the inclusion of household inflation expectations in the Phillips curve helps to explain puzzling global inflation dynamics during the post-crisis period.