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Introducing persistence in EMU inflation analysis

Posted by Yapi Kredi Bank in September 25th 2008  
● We add a new tool to our inflation-watch instruments for the euro area: a persistence-weighted (PW) measure of core inflation.  ● Contrary to standard measures of core inflation that strip out the most erratic and volatile components, PW core inflation gives more weight to the items of the HICP basket displaying a higher degree of persistence.  ● This methodology delivers a core measure that allows capturing the more lasting component of price increases. Therefore, the PW core

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Filed under: Fundamental