 A new approach to measuring core inflation for Turkey: SATRIMOguz Atuk () and Utku Ozmen () Iktisat Isletme ve Finans, 2009, vol. 24, issue 285, pages 73-88 Abstract: Policymakers are interested in the general trend of inflation. Headline inflation is subject to different shocks and contains noise due to the heterogeneity inherit in it. Therefore, core inflation measures, which are better capable of indicating general trend, are developed. Atuk and Özmen (2009) introduced and discussed various core inflation measures for Turkey. Among various measures discussed, trimmed mean inflation –TRIM– performs relatively better. However, this measure fails to distinguish signal and noise when dealing with seasonal items. To overcome this drawback, this study introduces a new core inflation measure SATRIM–seasonally adjusted trimmed mean inflation. This methodology seasonally adjusts disaggregated price series and uses seasonally adjusted monthly figures in trimming process. Overall, SATRIM outperforms TRIM measure on the basis of trend tracking ability in different time spans. Moreover, SATRIM, which is dynamic in nature, is more careful when dealing with seasonal items, focusing on non-seasonal extreme changes. Keywords: Core inflation; trimmed mean; seasonality; Turkey (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: http://EconPapers.repec.org/RePEc:iif:iifjrn:v:24:y:2009:i:285:p:73-88 Ordering information: This journal article can be ordered from Access Statistics for this article Iktisat Isletme ve Finans is edited by Ali Bilge More articles in Iktisat Isletme ve Finans from Bilgesel Yayincilik |
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