We study the determinants of persistently high inflation episodes using duration models. We find that central bank transparency significantly shortens the length of these periods. Using monthly data for 180 countries from 1998 to 2023, we define “very high inflation” as year-over-year inflation exceeding the 95th percentile of a country’s recent historical distribution. The duration analysis indicates that transparent central banks reduce inflation persistence by anchoring expectations and reinforcing credibility. These findings emphasize that clear communication and openness serve as key complements to formal policy frameworks, particularly when the goal is to mitigate persistently high inflation.
