Comparing "exclusion" and "neutralization" for computing core inflation: Results for the Philippines

• Main Author: Dumagan, Jesus C.
• Format: text
• Published: Animo Repository 2022
• Subjects: Headline inflation; core inflation; exclusion; neutralization
• Online Access: https://animorepository.dlsu.edu.ph/res_aki/6; https://animorepository.dlsu.edu.ph/context/res_aki/article/1004/viewcontent/dlsu_aki_working_paper_series_2022_04_082_finalversion.pdf
• Institution: De La Salle University

Core inflation removes from headline inflation (i.e., overall CPI inflation) volatile prices. One way for removal is “exclusion” of selected commodities by setting their weights to zero, which is practiced in the Philippines—and in Brazil, Israel, Korea, Poland, and the United States, to name a few—...