Core inflation in the United Kingdom

Quarterly Bulletin 2001 Q2
Published on 01 June 2001

By Joanne Cutler

Measures of core inflation attempt to strip out the effect of temporary disturbances from headline inflation, to uncover the underlying rate of inflation. This article looks at a selection of core inflation measures that have been estimated for the United Kingdom. It also introduces a new measure based on the idea that persistence of disaggregated inflation rates matters when measuring core inflation. These different measures of core inflation are evaluated against a number of desirable criteria, as suggested by the literature, and in particular their correlation with future RPIX inflation.

PDFCore inflation in the United Kingdom

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