Measuring Core Inflation in India
Joice John () and
Additional contact information
Sanjay Singh: Reserve Bank of India, Mumbai, India, Postal: Reserve Bank of India, Mumbai, India
Indian Economic Review, 2009, vol. 44, issue 2, 247-273
The inflation, which is, calculated as year-on-year percent change in general price level, is a combined effect of several types of price changes. The monetary authority tries to track that part of inflation, which can be effectively monitored and controlled using various monetary instruments. This persistent component of inflation is termed as ‘Core Inflation’, which comprises long-run properties as well as predictive power of future inflation. In this paper, 12 different measures of core inflation making use of 8 different methodologies viz. Exclusion basis, Mean-SD, Median, Trimmed Mean, Historical Standard Deviation, Hodrick-Prescott Filter, Wavelet Filter and Structural Vector AutoRegression (SVAR) are presented. Moreover, this paper has outlined 9 approaches for judging the preferred measure(s) based on different properties of core inflation.
Keywords: CoreInflation (search for similar items in EconPapers)
JEL-codes: E31 (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:dse:indecr:0007
Ordering information: This journal article can be ordered from
Access Statistics for this article
Indian Economic Review is currently edited by Pami Dua (Editor) & Ram Singh (Associate Editor) and Sunil Kanwar
More articles in Indian Economic Review from Department of Economics, Delhi School of Economics University of Delhi, Delhi 110 007. Contact information at EDIRC.
Bibliographic data for series maintained by Pami Dua ().