Tracking Chinese CPI inflation in real time

Michael Funke, Aaron Mehrotra and Hao Yu

No 35/2011, BOFIT Discussion Papers from Bank of Finland Institute for Emerging Economies (BOFIT)

Abstract: With recovery from the global financial crisis in 2009 and 2010, inflation emerged as a major concern for many central banks in emerging Asia. We use data observed at mixed frequencies to estimate the movement of Chinese headline inflation within the framework of a state-space model, and then take the estimated indicator to nowcast Chinese CPI inflation. The importance of forward-looking and high-frequency variables in tracking inflation dynamics is highlighted and the policy implications discussed.

Keywords: Nowcasting; CPI inflation cycle; mixed-frequency modelling; dynamic factor model; China (search for similar items in EconPapers)
JEL-codes: C53 E31 E37 (search for similar items in EconPapers)
Date: 2011
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Related works:
Journal Article: Tracking Chinese CPI inflation in real time (2015)
Working Paper: Tracking Chinese CPI inflation in real time (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bofitp:bdp2011_035

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