EconPapers    
Economics at your fingertips  
 

Underlying Inflation Measures in Spain

Luis Alvarez and M de los Llanos Matea

DNB Staff Reports (discontinued) from Netherlands Central Bank

Abstract: Applying the concept of underlying inflation can be thought of as an attempt to capture the general trend in inflation more accurately than with readily available data on headline inflation. In this paper a number of approaches to the analysis of underlying inflation are examined from a unifying standpoint, stressing their complementary nature, and empirical results are presented for the Spanish economy. Different measures differ from each other in the information set which is considered to be relevant for estimating the underlying rate of inflation. We first examine the simplest of the procedures that amounts to ignoring price developments in the most volatile sub-components of the CPI and then consider limited-influence estimators that take advantage of the information contained in the cross-sectional distribution of individual prices. Statistical methods of extracting the trend component of inflation are also discussed. Finally, measures that allow for the interplay of other economic variables are considered.

Keywords: core inflation; Spanish inflation; trimmed means; structural VAR; underlying inflation (search for similar items in EconPapers)
JEL-codes: C4 E3 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2001
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
https://www.dnb.nl/binaries/sr060_tcm46-146837.pdf (application/pdf)

Related works:
Working Paper: Underlying Inflation Measures in Spain (1999) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:dnb:staffs:60

Access Statistics for this paper

More papers in DNB Staff Reports (discontinued) from Netherlands Central Bank Contact information at EDIRC.
Bibliographic data for series maintained by Richard Heuver ().

 
Page updated 2020-11-24
Handle: RePEc:dnb:staffs:60