Publications RSS

Developing an underlying inflation gauge for China

by Marlene Amstad, Ye Huan and Guonan Ma on 9th October 2014

Developing an underlying inflation gauge for China

This paper develops a new underlying inflation gauge (UIG) for China which differentiates between trend and noise, is available daily and uses a broad set of variables that potentially influence inflation. Its construction follows the works at other major central banks, adopts the methodology of a dynamic factor model that extracts the lower frequency components as developed by Forni et al (2000) and draws on the experience of the People’s Bank of China in modelling inflation.

See more publications...