Core Inflation Measures for Pakistan

Sadia Tahir ()
Additional contact information
Sadia Tahir: State Bank of Pakistan

No 4, SBP Working Paper Series from State Bank of Pakistan, Research Department

Abstract: An appropriate measure of monetary inflation is not only essential for taking prompt monetary policy decisions, but also in explaining them. Headline measure of inflation in terms of Consumer Price Index includes both monetary and short run non-monetary changes in prices. The concept of core inflation is to purge the components of transitory and non-monetary changes from the CPI basket. This is all the more desirable when distribution of price changes departs from normality, as is the case in Pakistan as well as in the other countries. Some of the alternative measures of core inflation are constructed in this paper and among these, it is found that trim-based measure compares favorably with those based on methods of excluding fixed items from the basket of CPI.

Keywords: Inflation; time-series data (search for similar items in EconPapers)
JEL-codes: C22 E31 (search for similar items in EconPapers)
Pages: 21 pages
Date: 2003-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published in SBP Research Bulletin, Volume 2, Number 2, 2006, pages 319-342

Downloads: (external link)
http://www.sbp.org.pk/repec/sbp/wpaper/wp04.pdf First version, 2003 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.sbp.org.pk/repec/sbp/wpaper/wp04.pdf [301 Moved Permanently]--> https://www.sbp.org.pk/repec/sbp/wpaper/wp04.pdf)

Related works:
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:sbp:wpaper:04

Access Statistics for this paper

More papers in SBP Working Paper Series from State Bank of Pakistan, Research Department Contact information at EDIRC.
Bibliographic data for series maintained by Faisal Saleem ().