Revisiting the information content of core inflation

Michele Lenza

Research Bulletin, 2011, vol. 14, 11-13

Abstract: Should a medium-term-oriented monetary policy completely disregard fluctuations in energy and food prices? This article shows that changes in energy and food prices in the euro area are transmitted, with a delay, to the remaining items in the consumer price basket. Hence, excluding energy and food prices from the index of consumer prices may distort the timeliness and reliability of signals of future inflationary pressures. JEL Classification: E0, E3

Keywords: core; inflation (search for similar items in EconPapers)
Date: 2011-10
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Citations: View citations in EconPapers (2)

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