inflation. During crises periods, the strength of the transmission of inflation uncertainty shocks from one country to another … tends to intensify. This paper examines empirical methodologies to measure the strength of the interdependence of inflation … uncertainty between the UK and the euro area. We first estimate inflation uncertainty by ex post forecast errors from a bivariate …

Both the theory and practice of using hedonic regressions to quality adjust inflation estimates are implicitly … recommendations results in higher estimates of inflation, similar to official quality-adjusted inflation rate …

policy credibility. The concept and measurement of core inflation has an important role to play both in the formulation of …Over the last decade central banks have tended to accord increased importance to controlling inflation and fostering … policy aimed at controlling inflation and in providing policy accountability. In practice, however, the concept of core …

aggregation strategies and actual prices paid by consumers. We demonstrate that our methodology improves inflation measurement …

monetary policymaking. First, we discuss why trimmed means provide the best measure of core inflation. Second, we outline how … rigidities impede policymakers' ability to control inflation. And third, we describe how alternative shock/rigidity combinations … create inflation's grease (whereby it improves economic efficiency by speeding adjustment) and sand effects (whereby it …

In density forecasts, respondents are asked to assign probabilities to pre-specifted ranges of inflation. We show in … implications for survey design and how central banks can adjust the response scales during times of high inflation. …

How much does quality adjustment matter in measuring consumer price inflation? To address this question, we use … inflation only by 0.06 percentage points, which is balanced out by an increase due to quantity adjustment (e.g. a smaller … deriving the distribution of member states' cumulative inflation rates for typical quality-adjusted products. Our macro …

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 …

then estimate alternative inflation rates for tenant rent and owners' equivalent rent based on American Housing Survey data …, following BLS methodology as closely as possible. Our alternative tenant rent inflation series is generally consistent with the … corresponding BLS series. However, our alternative owners' equivalent rent inflation series is consistently lower than the …

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 …