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 …

Many alternative measures of core, or underlying, inflation have been proposed that are based on stripping out some … core inflation utilizing an explicit economic definition. It defines core inflation as that part of measured inflation that …. This definition captures the commonly held view that moderate movements in inflation can have no impact on the real economy …

The standard measure of core or underlying inflation is the inflation rate excluding food and energy prices. This paper … constructs an alternative measure, the weighted median inflation rate, for 38 advanced and emerging economies using subclass …, and more closely related to headline inflation over the next year. The weighted median also has a drawback: in most …

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 …

under-weighted, but the under-weighting remains fairly stable over time so that inflation measurement is not signi ficantly … both the representativeness of prices included in the CPI and on estimates of inflation. We use high-frequency scanner data …

time so that inflation measurement is not significantly affected. In addition, we find evidence that the typical practice … estimates of inflation. We use high-frequency scanner data from US supermarkets to explore if there is any systematic …