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Measures of New Zealand core inflation

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Assessing the strength of inflationary pressures is challenging. Headline inflation can be volatile due to temporary or idiosyncratic factors which are unrelated to the strength of domestic demand, or which are not expected to be repeated. Core inflation measures attempt to examine the component of inflation that is related to broad trends in economic conditions and pricing behaviour, and which is likely to be more persistent. There is no agreed upon ‘best’ approach to measuring core inflation, and each approach has various advantages and limitations. Some work best in some circumstances; some in others.

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  • Satish Ranchhod, 2013. "Measures of New Zealand core inflation," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 76, pages 3-11, March.
    • Handle: RePEc:nzb:nzbbul:mar2013:01
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    File URL: http://www.rbnz.govt.nz/-/media/ReserveBank/Files/Publications/Bulletins/2013/2013mar76-1ranchhod.pdf
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    1. Cogley, Timothy, 2002. "A Simple Adaptive Measure of Core Inflation," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 34(1), pages 94-113, February.
    2. Michael Kirker, 2010. "What drives core inflation? A dynamic factor model analysis of tradable and nontradable prices," Reserve Bank of New Zealand Discussion Paper Series DP2010/13, Reserve Bank of New Zealand.
    3. Stephen G. Cecchetti, 1997. "Measuring short-run inflation for central bankers," Review, Federal Reserve Bank of St. Louis, issue May, pages 143-155.
    4. Christian Gillitzer & John Simon, 2006. "Component-smoothed Inflation: Estimating the Persistent Component of Inflation in Real Time," RBA Research Discussion Papers rdp2006-11, Reserve Bank of Australia.
    5. Domenico Giannone & Troy D. Matheson, 2007. "A New Core Inflation Indicator for New Zealand," International Journal of Central Banking, International Journal of Central Banking, vol. 3(4), pages 145-180, December.
    6. Rachel Holden, 2006. "Measuring core inflation," Reserve Bank of New Zealand Bulletin, Reserve Bank of New Zealand, vol. 69, pages 1-7, December.
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    1. Günes Kamber & Benjamin Wong, 2016. "Testing an Interpretation of Core Inflation Measures in New Zealand," Reserve Bank of New Zealand Analytical Notes series AN2016/06, Reserve Bank of New Zealand.
    2. José Manuel Belbute & Leonardo Dia Massala & Júlio António Delgado, 2015. "Assessing core inflation indicators: evidence for Angola," CEFAGE-UE Working Papers 2015_01, University of Evora, CEFAGE-UE (Portugal).
    3. Franz Ruch & Mehmet Balcilar & Rangan Gupta & Mampho P. Modise, 2020. "Forecasting core inflation: the case of South Africa," Applied Economics, Taylor & Francis Journals, vol. 52(28), pages 3004-3022, June.

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