Measurement and Theory of Core Inflation

29 Pages Posted: 19 Aug 2024

See all articles by Argia M. Sbordone

Argia M. Sbordone

Federal Reserve Bank of New York

Martin Almuzara

Federal Reserve Banks - Federal Reserve Bank of New York

Date Written: August 01, 2024

Abstract

We discuss the concept of core inflation and its relevance for policymakers and then review a variety of approaches that have been pursued for the construction of informative core measures. After illustrating some empirical patterns displayed by U.S. inflation data and discussing conceptual issues around measurement, we provide a unified framework to interpret various widely used core measures and compare their relative properties.

Keywords: inflation, core inflation

JEL Classification: E31, E32, E52

Suggested Citation

Sbordone, Argia M. and Almuzara, Martin, Measurement and Theory of Core Inflation (August 01, 2024). https://doi.org/10.59576/sr.1115, FRB of New York Staff Report No. 1115, Available at SSRN: https://ssrn.com/abstract=4928265

Argia M. Sbordone (Contact Author)

Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

Martin Almuzara

Federal Reserve Banks - Federal Reserve Bank of New York ( email )

33 Liberty Street
New York, NY 10045
United States

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