Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/95693
Authors: 
Khan, Mikael
Morel, Louis
Sabourin, Patrick
Year of Publication: 
2013
Series/Report no.: 
Bank of Canada Working Paper 2013-35
Abstract: 
In this paper, the authors propose a measure of underlying inflation for Canada obtained from estimating a monthly factor model on individual components of the CPI. This measure, labelled the common component of CPI, has intuitive appeal and a number of interesting features. In particular, it is not affected by sector-specific price movements that can distort the signal in many other measures of underlying inflation, and appears to capture price movements that are indicative of aggregate demand fluctuations in the Canadian economy. This indicator may serve as a useful complement to existing measures of underlying inflation monitored by the Bank of Canada.
Subjects: 
Econometric and statistical methods
Inflation and prices
Business fluctuations and cycles
Monetary policy framework
JEL: 
C1
E31
E32
E52
E58
Document Type: 
Working Paper

Files in This Item:
File
Size
787.23 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.