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Assessing core inflation indicators: evidence for Angola

Author

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  • José Manuel Belbute

    (Department of Economics, University of Évora, Portugal Center for Advanced Studies in Management and Economics - CEFAGE, Portugal)

  • Leonardo Dia Massala

    (Departament of Economic Studies, Banco Nacional da Angola)

  • Júlio António Delgado

    (INOVE Research)

Abstract

The objective of this paper is to evaluate whether or not four core inflation indicators for Angola meet the conditions required by any candidate to core inflation indicator. Our results suggest that the cross-section price change of the Consumer Price Index for Angola is right skewed and leptokurtic. Moreover, asymmetry and kurtosis are positively and highly correlated, which makes it impossible to isolate and correct separately these two statistical characteristics of the sample. Our findings also suggest that the underlying inflation and the 10% trimmed inflation indicators satisfy the proposed conditions for a core inflation indicator. Therefore these two indicators can be used as useful measures for core inflation in Angola by the Banco Nacional de Angola.

Suggested Citation

  • 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).
    • Handle: RePEc:cfe:wpcefa:2015_01
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    References listed on IDEAS

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    1. José Manuel Belbute & Leonardo Dia Massala & Júlio António Delgado, 2016. "Measuring Persistence in Inflation: Evidence For angola," South African Journal of Economics, Economic Society of South Africa, vol. 84(4), pages 594-606, December.

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    More about this item

    Keywords

    Core inflation indicators; Underlying inflation; Trimmed mean; Assessment criteria.;
    All these keywords.

    JEL classification:

    • C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy

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