02219cas a2200325 a 4500 AALejournalIMF014950 230101c9999 xx r poo 0 0eng d 5.00 USD 9781484387818 1018-5941 BD-DhAAL BD-DhAAL da Silva Filho, Tito Nicias Teixeira. A Volatility and Persistence-Based Core Inflation / Tito Nicias Teixeira da Silva Filho, Francisco Marcos Rodrigues Figueiredo. Washington, D.C. : International Monetary Fund, 2015. 1 online resource (19 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students Intuitively core inflation is understood as a measure of inflation where noisy price movements are avoided. This is typically achieved by either excluding or downplaying the importance of the most volatile items. However, some of those items show high persistence, and one certainly does not want to disregard persistent price changes. The non-equivalence between volatility and (the lack of) persistence implies that when one excludes volatile items relevant information is likely to be discarded. Therefore, we propose a new type of core inflation measure, one that takes simultaneously into account both volatility and persistence. The evidence shows that such measures far outperform those based on either volatility or persistence. The latter have been advocated in the literature in recent years. Mode of access: Internet Core Inflation Literature imf Core Inflation Measure imf Multistep Headline Inflation Forecast imf Quarterly Headline Inflation imf WP imf Brazil imf Marcos Rodrigues Figueiredo, Francisco. IMF Working Papers; Working Paper ; No. 2015/008 Full text available on IMF http://elibrary.imf.org/view/journals/001/2015/008/001.2015.issue-008-en.xml IMF e-Library