E31 - Price Level; Inflation; Deflation

• A Comprehensive Evaluation of Measures of Core Inflation for Canada

  Staff Discussion Paper 2015-12 Mikael Khan, Louis Morel, Patrick Sabourin

  This paper evaluates the usefulness of various measures of core inflation for the conduct of monetary policy. Traditional exclusion-based measures of core inflation are found to perform relatively poorly across a range of evaluation criteria, in part due to their inability to filter unanticipated transitory shocks.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Inflation and prices, Monetary policy framework JEL Code(s): E, E3, E31, E5, E52

• Exchange Rate Pass-Through to Consumer Prices: Theory and Recent Evidence

  Staff Discussion Paper 2015-9 Laurence Savoie-Chabot, Mikael Khan

  In an open economy such as Canada’s, exchange rate movements can have a material impact on consumer prices. This is particularly important in the current context, with the significant depreciation of the Canadian dollar vis-a-vis the U.S. dollar since late 2012.

  Content Type(s): Staff research, Staff discussion papers Topic(s): Exchange rates, Inflation and prices JEL Code(s): E, E3, E31, E5, E52, F, F3, F31