A New Approach to Construct Core Inflation

We propose a new methodology to construct core inflation which is, unlike other conventional methods, not based on ad hoc elimination/trimming of prices. The underlying inflation derived from our method is found to be a powerful leading indicator of headline inflation while other conventional measures do not seem to reflect such fundamental property of core inflation.

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Year of publication:	2014-09
Authors:	Rather, Sartaj Rasool ; Durai, S. Raja Sethu ; Ramachandran, M.
Institutions:	Madras School of Economics
Subject:	Core inflation \| Skewness \| Leading indicator

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Extent:	application/pdf
Series:	Working Papers.
Type of publication:	Book / Working Paper
Notes:	17 pages
Classification:	C43 - Index Numbers and Aggregation ; E31 - Price Level; Inflation; Deflation ; E52 - Monetary Policy (Targets, Instruments, and Effects)
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10011093770