A measure of core inflation in Bangladesh

Shahiduzzaman, Md (2006) A measure of core inflation in Bangladesh. Working Paper. Bangladesh Bank , Dhaka, Bangladesh. [Report]

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Abstract

Core inflation refers to the persistent or general part of headline inflation that is free from temporary noise. The temporary noise parts are explained by the non-monetary events, such as sector specific shocks. It is argued that the trend in core inflation and not CPI should guide the formulation of monetary policy, and in providing policy accountability for the Central Banks. While it has now become a standard practice for most Central Banks around the world to monitor core inflation, no progress has so far been made in the Bangladesh context. This paper takes a pioneering look in measuring core inflation in Bangladesh, focusing on the popular exclusion and trimmed mean approaches. The performance criteria adopted in this study shows the superiority of trimmed mean measures over the exclusion measures of core inflation in Bangladesh.

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Item Type:	Report (Working Paper)
Refereed:	No
Item Status:	Live Archive
Additional Information:	Copyright © 2006 by Bangladesh Bank.
Faculty/School / Institute/Centre:	Historic - Faculty of Business - Department of Economics and Resource Management (Up to 31 Mar 2007)
Faculty/School / Institute/Centre:	Historic - Faculty of Business - Department of Economics and Resource Management (Up to 31 Mar 2007)
Date Deposited:	26 Jun 2013 23:38
Last Modified:	21 Aug 2013 02:09
Uncontrolled Keywords:	inflation; Bangladesh; exclusion method; trimmed mean
Fields of Research (2008):	14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth 16 Studies in Human Society > 1605 Policy and Administration > 160505 Economic Development Policy 14 Economics > 1402 Applied Economics > 140207 Financial Economics
Socio-Economic Objectives (2008):	B Economic Development > 91 Economic Framework > 9102 Microeconomics > 910206 Market-Based Mechanisms
URI:	http://eprints.usq.edu.au/id/eprint/6283

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