Robust Measures of Core Inflation for Vietnam

February 10, 2016

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Format: Chicago

Sanjay Kalra, and Bui Thi Trang Dzung. Robust Measures of Core Inflation for Vietnam, (USA: International Monetary Fund, 2016) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

The paper develops robust measures of core inflation for Vietnam that can be used in policy making. These core inflation measures (CIMs) are based on an analytical evaluation of the inflation process in Vietnam, and use a filtering approach to narrow down potential measures that satisfy certain empirically desirable criteria. The paper finds that commonly used exclusion-based measures (EBMs) do not perform well against these empirical criteria; trimmed mean measures (TMMs) do better. Among TMMs, “one trim does not fit all periods”; periods of high and variable inflation require larger trims, and conversely. EVIEWS and MATLAB programs which accompany the paper allow quick, timely replication of CIMs as new data become available, making them valuable tools for the State Bank of Vietnam on an ongoing basis.

Subject: Central bank policy rate, Consumer price indexes, Financial services, Inflation, Price controls, Prices

Keywords: Asia and Pacific, Central bank policy rate, Component inflation, Consumer price indexes, Core inflation, Exclusion-based measures, Food inflation, Global, Inflation, Inflation dynamics, Inflation index, Inflation pressure, Inflation process, Monetary Policy, Price controls, Vietnam, WP

Publication Details

Pages:

30
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2016/019
Stock No:

WPIEA2016019
ISBN:

9781475521368
ISSN:

1018-5941

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