Measures of Underlying Inflation in Sri Lanka

During the first half of 2008, Sri Lanka witnessed significantly higher inflation than most other emerging Asian countries. Inflation has since declined amid declining world commodity prices and tight monetary policy. Given the sensitivity to global commodity prices, a core inflation measure could b...

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Bibliographic Details
Main Author: Gupta, Souvik
Other Authors: Saxegaard, Magnus
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2009
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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653 |a Macroeconomics 
653 |a Prices, Business Fluctuations, and Cycles: General (includes Measurement and Data) 
653 |a Consumer price indexes 
653 |a Cyclical indicators 
653 |a Deflation 
653 |a Prices 
653 |a Energy: Demand and Supply 
653 |a Monetary Policy 
653 |a Price indexes 
653 |a Econometric Modeling: General 
653 |a Inflation 
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520 |a During the first half of 2008, Sri Lanka witnessed significantly higher inflation than most other emerging Asian countries. Inflation has since declined amid declining world commodity prices and tight monetary policy. Given the sensitivity to global commodity prices, a core inflation measure could be useful for monetary policy. The purpose of this paper is to compare the performance of Sri Lanka's existing official measure of core inflation against alternative measures. Our findings suggest that the existing measure does contain information about the future path of headline information, but may be inadequate as a communication tool for the Central Bank