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PULSE check : measuring underlying inflation and its drivers / Luis Uzeda.FB3-7/2025-29E-PDF

"This note presents PULSE, a new measure of underlying inflation in Canada based on a dynamic factor model estimated on disaggregated inflation data. PULSE captures the persistent component of inflation and decomposes it into broad-based and sector-specific inflationary pressures. We find that broad-based inflationary pressures account for most underlying inflation, while sector-specific factors—particularly shelter—have become more inflationary since 2021. Unlike CPI-common, PULSE is less prone to large historical revisions and maintains a strong correlation with economic slack"--Abstract, page ii.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.958868&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitlePULSE check : measuring underlying inflation and its drivers / Luis Uzeda.
Series title
  • Staff analytical note = Note analytique du personnel, 2369-9639 ; 2025-29
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • "Last updated: December 12, 2025."
  • Includes bibliographical references (page 14).
  • Includes abstracts in English and French.
Publishing information
  • [Ottawa] : Bank of Canada = Banque du Canada, 2025.
  • ©2025
Author / Contributor
  • Uzeda, Luis, author.
Description1 online resource (ii, 14 pages) : colour illustrations.
Catalogue number
  • FB3-7/2025-29E-PDF
Subject terms
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