are often used for monetary policy. Until now, the use of trimmed-mean price statistics in forecasting inflation has often … the inflation forecasting improvements are perhaps not surprising given the current literature on core inflation …

statistics in forecasting inflation has often been relegated to simple univariate or Phillips curve approaches, thus limiting … extreme trimmed-mean measure—the median CPI—improves the forecasts of both core and headline inflation (CPI and personal … consumption expenditures) across our set of monthly and quarterly BVARs. Although the inflation forecasting improvements are …

In this paper, we investigate the use of limited-information estimators as measures of core inflation. Employing a …-sectional distribution of inflation can cause substantial noise in the aggregate price index at high frequencies. The model suggests that … limited-influence estimators, such as the median of the cross-sectional distribution of inflation, will provide superior short …