correcting for measurement error, wages appear to be very sticky. In the average quarter, the probability that an individual will … consumer price inflation rate …

Policymakers tend to focus on core inflation measures because they are thought to be better predictors of total … inflation over time horizons of import to policymakers. The authors find little support for this assumption. While some measures … of core inflation are less volatile than total inflation, core inflation is not necessarily the best predictor of total …

Headline inflation in most industrialized countries, the US in particular, has been shown to be mean reverting to core … inflation in the medium term, whilst at the same time the pass-through of exogenous commodity price shocks from the headline to … volatility for the latter and creates a drive for investing in commodities as a hedge for the spread between both inflation …

this has on the measurement of inflation. Using a large US scanner data set on supermarket products and applying flexible … introduces a systematic bias in the measurement of inflation. For our data we find that the life cycle bias underestimates the … measurement of inflation by around 0.30 percentage points each year …