E58 - Central Banks and Their Policies

• The Common Component of CPI: An Alternative Measure of Underlying Inflation for Canada

  Staff Working Paper 2013-35 Mikael Khan, Louis Morel, Patrick Sabourin

  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.

  Content Type(s): Staff research, Staff working papers Topic(s): Business fluctuations and cycles, Econometric and statistical methods, Inflation and prices, Monetary policy framework JEL Code(s): C, C1, E, E3, E31, E32, E5, E52, E58