Research Discussion Paper – RDP 2006-11 Component-smoothed Inflation: Estimating the Persistent Component of Inflation in Real Time

Contents

• Introduction
• Literature Review
• An Alternative Measure of Underlying Inflation
• Results
• Caveats
• Conclusion
• Appendix A: Smoothing of Selected CPI Components
• References

We would like to thank Ellis Connolly, Christopher Kent and Tony Richards for helpful comments. The views expressed in this paper are those of the authors and do not necessarily reflect those of the Reserve Bank of Australia.