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A Note On The Trimmed Mean Measure Of Core Inflation In South Africa

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  • Zelda Blignaut
  • Greg Farrell
  • Victor Munyama
  • Logan Rangasamy

Abstract

This paper constructs and analyses the properties of a trimmed mean inflation rate for South Africa. Based on an analysis of the distributions of the consumer price index component price changes, a measure is constructed that provides an estimator of core inflation, which may be particularly useful to policymakers in an inflation-targeting environment. The trimmed mean estimator focuses on the price movements of individual components that have a strong bearing on the current and future trend of the headline inflation rate, allowing monetary policy to be directed at the persistent or underlying sources of inflationary pressures. Copyright (c) 2009 The Authors. Journal compilation (c) 2009 Economic Society of South Africa.

Suggested Citation

  • Zelda Blignaut & Greg Farrell & Victor Munyama & Logan Rangasamy, 2009. "A Note On The Trimmed Mean Measure Of Core Inflation In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 77(4), pages 538-552, December.
  • Handle: RePEc:bla:sajeco:v:77:y:2009:i:4:p:538-552
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    Citations

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    Cited by:

    1. Franz Ruch & Stan du Plessis, 2015. "Working Paper – WP/15/05- Second-Round Effects from Food and Energy Prices- an SBVAR approach," Papers 7008, South African Reserve Bank.
    2. Franz Ruch & Dirk Bester, 2011. "Towards a Measure of Core Inflation using Singular Spectrum Analysis," Working Papers 256, Economic Research Southern Africa.
    3. Mehmet Balcilar & Rangan Gupta & Charl Jooste, 2016. "Analyzing South Africa’s inflation persistence using an ARFIMA model with Markov-switching fractional differencing parameter," Journal of Developing Areas, Tennessee State University, College of Business, vol. 50(1), pages 47-57, January-M.
    4. Stan du Plessis, 2014. "Targeting core inflation in emerging market economies," Working Papers 23/2014, Stellenbosch University, Department of Economics.
    5. Franz Ruch & Mehmet Balcilar Author-Name-First Mehmet & Mampho P. Modise & Rangan Gupta, 2015. "Forecasting Core Inflation: The Case of South Africa," Working Papers 15-08, Eastern Mediterranean University, Department of Economics.
    6. Stan du Plessis, Gideon du Rand & Kevin Kotzé, 2015. "Measuring Core Inflation in South Africa," Working Papers 503, Economic Research Southern Africa.

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