Forecasting Inflation? Target the Middle
The Median CPI is well-known as an accurate predictor of future inflation. But it's just one of many possible trimmed-mean inflation measures. Recent research compares these types of measures to see which tracks future inflation best. Not only does the Median CPI outperform other trims in predi...
Saved in:
Published in | Economic commentary (Cleveland) no. 2013-5; pp. 1 - 4 |
---|---|
Main Authors | , , |
Format | Journal Article Trade Publication Article |
Language | English |
Published |
Cleveland
Federal Reserve Bank of Cleveland
12.04.2013
|
Subjects | |
Online Access | Get full text |
Cover
Loading…
Summary: | The Median CPI is well-known as an accurate predictor of future inflation. But it's just one of many possible trimmed-mean inflation measures. Recent research compares these types of measures to see which tracks future inflation best. Not only does the Median CPI outperform other trims in predicting CPI inflation, it also does a better job of predicting PCE inflation, the FOMC's preferred measure, than the core PCE. |
---|---|
ISSN: | 0428-1276 2163-3738 |
DOI: | 10.26509/frbc-ec-201305 |