Evaluation of core inflation measures for Argentina

Working papers | 2017 | N 73

Abstract

In this work, statistical measures of core inflation are calculated, including the method of principal components, the method of truncated means and the indexes reweighted by persistence and volatility, for the consumer price index (CPI) of the City of Buenos Aires, the Córdoba and San Luis. Following the criteria that a good indicator must meet according to the literature, it is found that the core inflation measure calculated from the first principal component is the best ranked for the City of Buenos Aires, while for San Luis and Córdoba the best relative performance This is shown by the measure calculated from the 30% asymmetric truncated mean.

JEL classification: C13, E31, E52, E58