At the core, inflation is caused by the systematic dysfunction of fixed capital’s amortization

2021 ◽  
pp. 340-355
Author(s):  
Bernard Schmitt ◽  
Alvaro Cencini ◽  
Xavier Bradley
Keyword(s):  
Core Inflation ◽  
The Core

Getting to the Core: Inflation Risks Within and Across Asset Classes

2021 ◽  
Author(s):  
Nikolai L. Roussanov ◽  
Yang Liu ◽  
Xiang Fang
Keyword(s):  
Core Inflation ◽  
The Core ◽  
Asset Classes

Disaggregated inflation rate in the monetary policy of the central bank

2017 ◽  
Vol 62 (1) ◽  
pp. 26-40
Author(s):  
Aleksandra Hałka
Keyword(s):  
Monetary Policy ◽  
Central Bank ◽  
Price Index ◽  
Inflation Rate ◽  
External Factors ◽  
Price Setting ◽  
Factors Affecting ◽  
Core Inflation ◽  
The Core ◽  
Setting Process

This article aims at presenting the results of the research concerning disaggregated price index in the assessment of inflation processes in Poland. Presented analysis shows that isaggregated approach allows for a fuller understanding of the nature of the price-setting process and etter identification of factors affecting inflation. The results indicate three conclusions. Firstly, a significant part of the inflation in Poland is dependent on domestic factors. Secondly, the core inflation rate should not be equated with the measure of demand pressures in the economy. Thirdly, a set of external factors affecting the price-setting process in Poland is relatively wide and distinct for different components of the price index.

scholarly journals A Robust Measure of Core Inflation in Saudi Arabia: Empirically Investigating the Trimmed Mean and the Median CPI

2022 ◽  
Vol 14 (2) ◽  
pp. 23
Author(s):  
Soleman Alsabban ◽  
Bander Alghamdi ◽  
Saud Altamimi
Keyword(s):  
Saudi Arabia ◽  
Structural Changes ◽  
Energy Prices ◽  
Trimmed Mean ◽  
New Era ◽  
Core Inflation ◽  
The Core ◽  
Vision 2030 ◽  
The Government ◽  
New Policies

The headline inflation in Saudi Arabia is subject to dramatic changes caused by new policies as the economy is undergoing structural changes since 2016. These changes could mislead policymakers as the underlying inflation may differ from the headline one. Since the announcement of Saudi Vision 2030 in April 2016, the Saudi economy entered a new era where the government has started to reform the economy to reduce its dependence on oil. As a result, many initiatives have been implemented with different impacts on the headline inflation such as imposing new taxes and expat levies and reforming energy prices. This research aims to calculate the core inflation in Saudi Arabia using two different methods: Trimmed Mean, and Median CPI. These two different methods were assessed based on their ability to track trends in the headline inflation over time as measured by the root mean square error and it ability to predict the future headline inflation.

scholarly journals Denoised Inflation: A New Measure of Core Inflation

2020 ◽  
Vol 9 (2) ◽  
pp. 131-154
Author(s):  
Muhammad Nadim Hanif ◽  
Javaid Iqbal ◽  
Syed Hamza Ali ◽  
Muhammad Abdus Salam
Keyword(s):  
Monetary Policy ◽  
Wavelet Analysis ◽  
Policy Making ◽  
Price Index ◽  
Analysis Approach ◽  
Economic Cycle ◽  
Core Inflation ◽  
The Core ◽  
Cyclical Component

AbstractExisting measures of core inflation ignore a part of ‘should be’ the core inflation. Exclusion based measures ‘exclude’ a part of persistent inflation inherently existing in the excluded part whereas filter based measures ‘filter-out’ the cyclical part also rather than the irregular component only. This study proposes a new idea to define and measure core inflation – noise free inflation or denoised inflation. As against considering only trend to define core inflation, this study proposes using cyclical component also to be part of core inflation. If core inflation is to be useful, for monetary policy making, as an indicator of underlying inflation, it has to include demand related component of inflation associated with current economic cycle. By using wavelet analysis approach to decompose seasonally adjusted price index into noise, cyclical component and trend, we estimate a denoised inflation series for Pakistan for the period July 1992 to June 2017. Since denoised inflation passes ‘statistical’ as well as ‘theoretical’ tests necessary for a series to be core inflation, we think it can be used as a new core inflation measure for Pakistan. This can also be estimated and tested for any country.

scholarly journals Core Inflation, Expectations and Inflation Dynamics in Brazil

2019 ◽  
Vol 11 (6) ◽  
pp. 1
Author(s):  
Antônio Clécio de Brito ◽  
Elano Ferreira Arruda ◽  
Ivan Castelar ◽  
Nicolino Trompieri Neto ◽  
Cristiano Santos
Keyword(s):  
Phillips Curve ◽  
Generalized Method Of Moments ◽  
New Keynesian ◽  
Inflation Expectations ◽  
Inflation Dynamics ◽  
Monthly Data ◽  
Core Inflation ◽  
The Core ◽  
Inflation Forecasts ◽  
Forward Looking

This work investigates the adequacy of core inflation measures as indicators of forward-looking expectations in the hybrid new Keynesian Phillips curve (HNKPC) for the Brazilian economy. For that purpose, we use monthly data between January 2002 and August 2015 and the heteroscedasticity and autocorrelation consistent generalized method of moments (HAC-GMM). The results indicate that the HNKPC is a robust mechanism to model Brazilian inflation dynamics in the period analyzed; that the recent increase in the degree of indexation of the Brazilian economy seems to have contributed to the formation of a stronger inertial component of inflation; and also that the core inflation measures appear to be potential indicators to model forward-looking expectations in the HNKPC in Brazil. Furthermore, the inflation forecasts extracted from these models are statistically similar to those generated by models that use market prognoses from the Focus survey published by the Central Bank of Brazil. Therefore, the core inflation measures appear to have adequately anchored the inflation expectations in Brazil in the period analyzed.

Inflationsbegriff und Inflationsmessung

2007 ◽  
Vol 58 (3) ◽  
Author(s):  
Horst Gischer ◽  
Mirko Weiß
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Core Inflation ◽  
The Core ◽  
Economic Concept

SummaryOur paper addresses the economic concept of inflation, and how to measure inflation properly in practise. First of all we present and discuss comprehensively various definitions of inflation proposed and used in the literature. What follows, is a detailed investigation of empirical proxies or indices to cover inflation quantitatively. We focus on the Consumer Price Index (CPI) in general and for Germany in particular, the Harmonized Consumer Price Index (HCPI), the Core Inflation and the GDP-Deflator. The paper concludes with an analysis of the method of measuring inflation applied within the scope of the ECB Governing Council’s monetary strategy.

scholarly journals HOW WELL DOES “CORE” INFLATION CAPTURE PERMANENT PRICE CHANGES?

2014 ◽  
Vol 19 (4) ◽  
pp. 791-815 ◽  
Author(s):  
Michael D. Bradley ◽  
Dennis W. Jansen ◽  
Tara M. Sinclair
Keyword(s):  
Consumer Price Index ◽  
Energy Prices ◽  
Price Changes ◽  
Core Inflation ◽  
The Core ◽  
Permanent Shocks ◽  
Unobserved Components Model ◽  
Core Measure ◽  
Permanent And Transitory Components ◽  
Stationarity Of Inflation

Does excluding food and energy prices from the Consumer Price Index (CPI) produce a measure that better captures permanent price changes? To examine this question, we decompose CPI inflation and “core” inflation into their permanent and transitory components, using a correlated unobserved-components model. The stationarity of inflation may be time-varying, so we examine the performance of the core measure of inflation separately for periods in which inflation isI(1) andI(0). For a period in which inflation appears to beI(1), we find that core inflation and the permanent component of overall inflation are closely related, but there are some caveats. For a period in which inflation appears to beI(0), we decompose the core and overall price levels and find that the permanent component of the core CPI is much more volatile than the actual core series and that the core excludes volatile permanent shocks to the overall price level.

scholarly journals FLEXIBLE INFLATION TARGETING AND INFLATION PERSISTENCE IN INDONESIA: THE TRADITIONAL UNIVARIATE AND FRACTIONAL INTEGRATED UNIVARIATE APPROACHES

2020 ◽  
Vol 8 (5) ◽  
pp. 81-87
Author(s):  
Zainuri Zainuri ◽  
Muhammad Iqbal Fasa ◽  
Roymon Panjaitan ◽  
Fauzul Hanif Noor Athief
Keyword(s):  
Inflation Targeting ◽  
Food Prices ◽  
Inflation Expectations ◽  
Price Inflation ◽  
Inflation Persistence ◽  
Return To Equilibrium ◽  
Core Inflation ◽  
The Core ◽  
High Degree ◽  
Recent Policy

Purpose of the study: The high degree of inflation persistence will impact the Indonesian economy. The purpose of this study is to determine the degree of inflation persistence in Indonesia following the adoption of a flexible Inflation Targeting Framework (ITF). Methodology: Traditionally integrated univariate and fractional approach will be carried out in this research. The inflation variables used are core inflation, administered price inflation, volatile inflation, and general inflation. The data used is from 2014M1 to 2019M2. Main Findings: After data analysis, the researchers found that high persistence behaviors are found, especially in the core, administered, and volatile inflation, following the flexible adoption of the ITF. The time it takes for inflation to return to equilibrium is 1 to 8 months for each group. Applications of this study: The result is important for the highest authorities in improving their policy. Structural improvements through monetary policy based on inflation expectations, increasing the transparency of food prices, and synergy with Central as well as Regional Inflation Control is suggested for the authorities. Novelty/Originality of this study: This study presents a different perspective of research within the inflation topic. It takes the recent policy implementation of a country and analyses its effect. To the best of the authors knowledge, this research is the first to explain the effect of the Inflation Targeting Framework on Indonesia's inflation condition.

scholarly journals What lies at the core of core inflation? An empirical analysis to identify the determinants of core inflation in Pakistan

2015 ◽  
Vol 10 (1) ◽  
pp. 47-60
Author(s):  
Mehwish Ghulam Ali ◽  
Muhammad Ather Elahi ◽  
Qazi Masood Ahmed
Keyword(s):  
Empirical Analysis ◽  
Core Inflation ◽  
The Core
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