Underlying Inflation: Its Measurement and Significance

Jeremy B. Rudd
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Jeremy B. Rudd: https://www.federalreserve.gov/econres/jeremy-rudd.htm

No 2020-09-18-1, FEDS Notes from Board of Governors of the Federal Reserve System (U.S.)

Abstract: Underlying inflation is the rate of inflation that would be expected to eventually prevail in the absence of economic slack, supply shocks, idiosyncratic relative price changes, or other disturbances. Underlying inflation is a useful benchmark for monetary policy in that it provides an idea of the rate of price change that would be expected to obtain under "normal" circumstances in an economy where the level of resource utilization is putting neither upward nor downward pressure on inflation.

Date: 2020-09-18
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Persistent link: https://EconPapers.repec.org/RePEc:fip:fedgfn:2020-09-18-1

DOI: 10.17016/2380-7172.2624

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