Journal Article

K-core inflation


Abstract: K-core inflation is a new class of underlying inflation measures. The two most popular measures of underlying inflation are core inflation and trimmed mean inflation. The former removes fixed categories of goods and services (food and energy) from the inflation calculation, and the latter removes fixed percentiles of the weighted distribution of price changes. In contrast, k-core inflation specifies a size of relative price change to be removed from the inflation calculation. Thus, the categories and percentiles to be removed vary with each period?s distribution of relative price changes.

Keywords: Monetary policy; Inflation (Finance);

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Economic Quarterly

Publication Date: 2011

Volume: 97

Issue: 4Q

Pages: 415-430