Sep 25
Introducing persistence in EMU inflation analysis
● 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
