Measures of Underlying Inflation in Sri Lanka
IMF Working Papers, August 1, 2009
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- Measures of Underlying Inflation in Sri Lanka
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Bibliographic details
- Authors: Souvik Gupta, Magnus Saxegaard
- Published: August 1, 2009
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451873146.001
Publication metadata
- Authors: Souvik Gupta, Magnus Saxegaard
- Publication date: August 1, 2009
- Series: Working Paper No. 2009/167
- Volume: 2009
- Issue: 167
- Pages: 22
- DOI: https://doi.org/10.5089/9781451873146.001
- Stock No: WPIEA2009167
- ISBN: 9781451873146
- ISSN: 1018-5941
Background and motivation
- During the first half of 2008, Sri Lanka experienced significantly higher inflation than most other emerging Asian countries.
- Inflation subsequently declined amid declining world commodity prices and tight monetary policy.
- Given sensitivity to global commodity prices, a core inflation measure could be useful for monetary policy.
Purpose and scope
- Purpose: To compare the performance of Sri Lanka's existing official measure of core inflation against alternative measures.
- Scope: Assessment of the information content of the official core inflation measure with respect to the future path of headline inflation and evaluation of its utility as a communication tool for the Central Bank.
Key findings
- The existing official measure of core inflation does contain information about the future path of headline inflation.
- The existing measure may be inadequate as a communication tool for the Central Bank.
Subjects and keywords
- Subject: Consumer price indexes, Cyclical indicators, Economic growth, Food prices, Fuel prices, Inflation, Prices
- Keywords: Consumer price indexes, core inflation, core inflation benefit, core inflation granger, core inflation measure, core inflation rate, Cyclical indicators, Food prices, Fuel prices, headline inflation, Inflation, measure of core inflation, Monetary Policy, Sri Lanka, world commodity price shock, WP
IMF Working Paper: Measures of Underlying Inflation in Sri Lanka (Working Paper No. 2009/167).