This study analyzes core inflation concept for Turkey from the perspective of design and evaluation. To our best knowledge, this is the first study to evaluate the performance of the core inflation measures for Turkey. We first define and calculate new core inflation indicators using the...

This paper explores the concept of underlying inflation and the properties of various measures of underlying inflation in the Australian context. Underlying inflation measures are routinely calculated and monitored by central banks in many countries, including the Reserve Bank of Australia....

This paper examines robust estimators of core inflation for Belgian historical CPI data, and for euro area Harmonised Indices of Consumer Prices. Evidence of fat tails in the cross-sections of price changes is provided by traditional measures, as well as by a robust measure of the tail weights...

The paper briefly reviews the accomplishments of the Ottawa Group on the occasion of its tenth meeting and then goes on to list ten problem areas in price measurement that have not been completely resolved and hence should be a focus of future meetings. The ten problem areas are: (1) the...

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 of core inflation convey critical information about an economy. They have a direct effect on the policy-making process, particularly in inflation-targeting countries, and are utilized in forecasting and modelling exercises. In South a Africa the prices indices on which inflation is...

In this study, we discuss the overall performance of different core inflation measures for Turkey. We first describe and derive the core measures based on exclusion, statistical and model-based methods. We then compare their performances during the entire sample period of January 2003 –...

This paper uses a restricted factor model to estimate the HICP index excluding relative prices changes. The index thus obtained, hereinafter referred to as pure inflation, demonstrates stronger relationship to the central bank instrument (short-term interest rate) than the HICP index and...

This paper is concerned with inflation targeting as a potential monetary policy objective in a developing economy. Using data from Nicaragua, it first studies the extent to which the Consumer Price Index (CPI) could be used to formulate short-run inflation targets. It is found that due to the...

Given the highly kurtotic and positively skewed characteristics of cross-sectional distribution of price, asymmetric trimmed-mean is the best approach in extracting the statistical medium-term trend of inflation. This paper uses asymmetric trimmed-mean approach to measure core inflation in...