Forbes, Kristin; Kirkham, Lewis; Theodoridis, Konstantinos - 2018
This paper uses a “trendy” approach to understand UK inflation dynamics. It focuses on the time series to isolate a low …‐frequency and slow moving component of inflation (the trend) from deviations around this trend. We find that this slow‐moving trend … explains a substantial share of UK inflation dynamics. International prices are significantly correlated with the short …