RDP 2005-05: Underlying Inflation: Concepts, Measurement and Performance References

Aucremanne L (2000), ‘The use of robust estimators as measures of core inflation’, National Bank of Belgium Working Paper No 2.

Australian Bureau of Statistics (ABS) (2004), ‘Seasonally adjusted and trend estimates for the consumer price index (CPI)’, Australian Economic Indicators, ABS Cat No 1350.0, December, pp 3–8.

Ball L and NG Mankiw (1995), ‘Relative-price changes as aggregate supply shocks’, Quarterly Journal of Economics, 110(1), pp 161–193.

Bryan MF and SG Cecchetti (1993), ‘The consumer price index as a measure of inflation’, Federal Reserve Bank of Cleveland Economic Review, 29(4), pp 15–24.

Bryan MF and SG Cecchetti (1994), ‘Measuring core inflation’, in NG Mankiw (ed), Monetary policy, University of Chicago Press, Chicago, pp 195–215.

Bryan MF, SG Cecchetti and RL Wiggins II (1997), ‘Efficient inflation estimation’, NBER Working Paper No 6183.

Bryan MF and SG Cecchetti (1999), ‘The monthly measurement of core inflation in Japan’, Bank of Japan Monetary and Economic Studies, 17(1), pp 77–101.

Cecchetti SG and G Debelle (2004), ‘Has the inflation process changed?’, prepared for the Bank for International Settlements annual conference ‘Understanding low inflation and deflation’, Brunnen, Switzerland, 18–19 June.

Clements KW and HY Izan (1987), ‘The measurement of inflation: a stochastic approach’, Journal of Business and Economics Statistics, 5(3), pp 339–350.

Cutler J (2001), ‘Core inflation in the UK’, External MPC Unit Discussion Paper No 3, Bank of England.

Diewert WE (1995), ‘On the stochastic approach to index numbers’, University of British Columbia Discussion Paper No 95-31.

Diewert WE (1997), ‘Commentary for “Alternative strategies for aggregating prices in the Consumer Price Index”’, Federal Reserve Bank of St. Louis Review, 79(3), pp 126–138.

Dixon R and GC Lim (2004), ‘Underlying inflation in Australia: are the existing measures satisfactory?’, Economic Record, 80(251), pp 373–386.

Faber SM and AM Fischer (2000), ‘Core inflation in Switzerland’, Swiss National Bank Quarterly Bulletin, December, pp 66–75.

Hampel FR, EM Ronchetti, PJ Rousseeuw and WA Stahel (1986), Robust statistics: the approach based on influence functions, Wiley, New York.

Heath A, ID Roberts and TJ Bulman (2004), ‘Inflation in Australia: measurement and modelling’, in C Kent and S Guttmann (eds), The future of inflation targeting, Proceedings of a Conference, Reserve Bank of Australia, Sydney, pp 167–207.

Hogan S, M Johnson and T Laflèche (2001), ‘Core inflation’, Bank of Canada Technical Report No 89.

Huber PJ (1964), ‘Robust estimation of a location parameter’, Annals of Mathematical Statistics, 35(1), pp 73–101.

Kearns J (1998), ‘The distribution and measurement of inflation’, Reserve Bank of Australia Research Discussion Paper No 9810.

Keynes JM (1930), A treatise on money, Harcourt Brace and Co, New York.

Laflèche T (1997), ‘Statistical measures of the trend rate of inflation’, Bank of Canada Review, Autumn, pp 29–47.

Machado JF, CR Marques, PD Neves and AG da Silva (2001), ‘Using the first principal component as a core inflation indicator’, Banco de Portugal Working Paper No 9-01.

Mankikar A and J Paisley (2002), ‘What do measures of core inflation really tell us?’, Bank of England Quarterly Bulletin, 42(4), pp 373–383.

Maria JR (2004), ‘On the use of the first principal component as a core inflation indicator’, Banco de Portugal Working Paper No 3-04.

Marques CR, PD Neves and AG da Silva (2002), ‘Why should central banks avoid the use of the underlying inflation indicator?’, Economics Letters, 75(1), pp 17–23.

Marques CR, PD Neves and LM Sarmento (2000), ‘Evaluating core inflation indicators’, Banco de Portugal Working Paper No 3-00.

OECD (Organisation for Economic Co-operation and Development) (2005), ‘Measuring and assessing underlying inflation’, OECD Economic Outlook, 77(1), pp 322–343.

Quah D and SP Vahey (1995), ‘Measuring core inflation’, Economic Journal, 105(432), pp 1130–1144.

Reserve Bank of Australia (1994), ‘Measuring “underlying” inflation’, Reserve Bank of Australia Bulletin, August, pp 1–6.

Reserve Bank of Australia (1998), ‘The implications of recent changes to the consumer price index for monetary policy and the inflation target’, Reserve Bank of Australia Bulletin, October, pp 1–5.

Roger S (1997), ‘A robust measure of core inflation in New Zealand, 1949–96’, Reserve Bank of New Zealand Discussion Paper No G97/7.

Roger S (1998), ‘Core inflation: concepts, uses and measurement’, Reserve Bank of New Zealand Discussion Paper No G98/9.

Shiratsuka S (1997), ‘Inflation measures for monetary policy: measuring the underlying inflation trend and its implication for monetary policy implementation’, Bank of Japan Monetary and Economic Studies, 15(2), pp 1–26.

Shu C and A Tsang (2004), ‘Alternative measures of core inflation on the mainland’, Research Memorandum, Hong Kong Monetary Authority, May.

Wynne MA (1997), ‘Commentary for “Measuring short-run inflation for central bankers”’, Federal Reserve Bank of St. Louis Review, 79(2), pp 163–168.

Wynne MA (1999), ‘Core inflation: a review of some conceptual issues’, Federal Reserve Bank of Dallas Working Paper No 9903.

Vega J-L and MA Wynne (2003), ‘A first assessment of some measures of core inflation for the euro area’, German Economic Review, 4, pp 269–306.