Introducing a systematic measure of idiosyncratic prices / by Madigan Dockrill and Laurence Savoie-Chabot.: FB3-7/2018-33E-PDF

"The goal of this paper is to create a systematic measure of idiosyncratic prices (SMIP) that would provide an unbiased evaluation of temporary factors in Canadian consumer price index (CPI) inflation. SMIP considers CPI components idiosyncratic when they have the highest scores based on five criteria: high volatility, low persistence, low degree of correlation with common movement across CPI components, low correlation with the output gap and extreme movements in the current period. The components captured by SMIP are found to account for a large proportion of the deviation of inflation from target over the sample, after controlling for the output gap. In the third quarter of 2018, in terms of the components and their contribution to the deviation of inflation from target, results from SMIP reinforce the narrative in the October 2018 Monetary Policy Report—CPI inflation is currently above target due to temporary factors"--Abstract, p. ii.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.863707&sl=0

Publication information
Department/Agency Bank of Canada.
Title Introducing a systematic measure of idiosyncratic prices / by Madigan Dockrill and Laurence Savoie-Chabot.
Series title Staff analytical note = Note analytique du personnel, 2369-9639 ;2018-33
Publication type Series - View Master Record
Language [English]
Other language editions [French]
Format Electronic
Electronic document
Note(s) Issued also in French under title: Présentation d’une mesure systématique des prix idiosyncratiques.
Includes bibliographic references.
Text in English, abstract in English and French.
Publishing information Ottawa : Bank of Canada, 2018.
Author / Contributor Dockrill, Madigan.
Savoie-Chabot, Laurence.
Description iii, 25 p. : charts.
Catalogue number
  • FB3-7/2018-33E-PDF
Subject terms Prices
Inflation
Request alternate formats
To request an alternate format of a publication, complete the Government of Canada Publications email form. Use the form’s “question or comment” field to specify the requested publication.
Date modified: