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Core Inflation Measures for Pakistan

Author

Listed:
  • Sadia Tahir

    () (State Bank of Pakistan)

Abstract

The concept of core inflation is to purge the components of transitory and nonmonetary changes from the CPI basket. This is all the more desirable when distribution of price changes departs from normality, as is the case in Pakistan as well as in other countries. Some of the alternative measures of core inflation are constructed in this paper and it is found that trim-based measure compares favorably with those based on methods of excluding fixed items from the basket of CPI.

Suggested Citation

  • Sadia Tahir, 2006. "Core Inflation Measures for Pakistan," SBP Research Bulletin, State Bank of Pakistan, Research Department, vol. 2, pages 319-342.
  • Handle: RePEc:sbp:journl:16
    as

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    File URL: http://www.sbp.org.pk/research/bulletin/2006/vol2num2/Core_Inflation_Measures_for_Pakistan.pdf
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    References listed on IDEAS

    as
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    8. M. Aynul Hasan & Ashfaque H. Khan & Hafiz A. Pasha & M. Ajaz Rasheed, 1995. "What Explains the Current High Rate of Inflation in Pakistan?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 34(4), pages 927-943.
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    12. Ehsan U. Choudhri & Mohsin S. Khan, 2002. "The Exchange Rate and Consumer Prices in Pakistan: Is Rupee Devaluation In Inflationary?," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 41(2), pages 107-120.
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    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Saba Saleem & Khalil Ahmad, 2015. "Crude Oil Price and Inflation in Pakistan," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 4(1), pages 10-18, March.
    2. Mehak Moazam & M. Ali Kemal, 2016. "Inflation in Pakistan: Money or Oil Prices," PIDE-Working Papers 2016:144, Pakistan Institute of Development Economics.
    3. Aitor Erce Domiguez, 2010. "Debtor Discrimination During Sovereign Debt Restructurings," 2010 Meeting Papers 1324, Society for Economic Dynamics.
    4. Khan, Safdar Ullah & Saqib, Omar Farooq, 2011. "Political instability and inflation in Pakistan," Journal of Asian Economics, Elsevier, vol. 22(6), pages 540-549.
    5. Sumera Arshad & Amajd Ali, 2016. "Trade-off between Inflation, Interest and Unemployment Rate of Pakistan: Revisited," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 5(4), pages 193-209, December.
    6. Aviral Kumar Tiwari & A. P. Tiwari, 2011. "Fiscal Deficit and Inflation: An empirical analysis for India," Romanian Economic Journal, Department of International Business and Economics from the Academy of Economic Studies Bucharest, vol. 14(42), pages 131-158, December.
    7. S. Adnan & H.A.S. BUKHARI & Safdar Ullah KHAN, 2008. "Does Volatility In Government Borrowing Leads To Higher Inflation? Evidence From Pakistan," Journal of Applied Economic Sciences, Spiru Haret University, Faculty of Financial Management and Accounting Craiova, vol. 3(3(5)_Fall), pages 187-202.
    8. Sayeed, Asad. & Abbasi, Zubair Faisal., 2015. "The role of central banks in supporting economic growth and creation of productive employment : the case of Pakistan," ILO Working Papers 994874753402676, International Labour Organization.
    9. Hayat, Zafar & Balli, Faruk & Rehman, Muhammad, 2017. "The relevance and relative robustness of sources of inflation bias in Pakistan," Economic Modelling, Elsevier, vol. 63(C), pages 283-303.
    10. SHAH Muhammad Imran & ULLAH Irfan & RAHMAN Zia Ur & JAN Nadeem, 2016. "The Debt Overhang Hypothesis: Evidence From Pakistan," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 11(1), pages 140-151, April.

    More about this item

    Keywords

    Consumer Price Index; Core Inflation; Pakistan;

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • E03 - Macroeconomics and Monetary Economics - - General - - - Behavioral Macroeconomics

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