Is the Euro-Area Core Price Index Really More Persistent than the Food and Energy Price Indexes?
Autor(a) principal: | |
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Data de Publicação: | 2010 |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10174/8470 |
Resumo: | The purpose of this paper is to measure the degree of persistence of the overall, core, food and energy Harmonized Indexes of Consumer Prices for the European Monetary Zone (HICP-EAs) and to identify its implications for decision-making in the private sector and in public policy. Using a non-parametric approach, our results demonstrate the presence of a statistically significant level of persistence in four HICP-EAs: headline, core, food and energy. Moreover, contrary to popular belief, the core index does not reflect permanent price changes. We also find evidence that the food and energy price indexes are more volatile and more persistent than the other two price indexes. Our results also show a reduction in persistence for both the headline and the core price indexes after the implementation of the single monetary policy, but not for food and energy. These results have important implications for both the private sector and for policymakers who use the core as a reference price index for their decision-making because the use of this index can lead to an erroneous perception of price movements. |
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Is the Euro-Area Core Price Index Really More Persistent than the Food and Energy Price Indexes?Harmonized Index of Consumption PricesCore InflationEuro AreaPersistenceThe purpose of this paper is to measure the degree of persistence of the overall, core, food and energy Harmonized Indexes of Consumer Prices for the European Monetary Zone (HICP-EAs) and to identify its implications for decision-making in the private sector and in public policy. Using a non-parametric approach, our results demonstrate the presence of a statistically significant level of persistence in four HICP-EAs: headline, core, food and energy. Moreover, contrary to popular belief, the core index does not reflect permanent price changes. We also find evidence that the food and energy price indexes are more volatile and more persistent than the other two price indexes. Our results also show a reduction in persistence for both the headline and the core price indexes after the implementation of the single monetary policy, but not for food and energy. These results have important implications for both the private sector and for policymakers who use the core as a reference price index for their decision-making because the use of this index can lead to an erroneous perception of price movements.2013-04-03T11:30:42Z2013-04-032010-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlehttp://hdl.handle.net/10174/8470http://hdl.handle.net/10174/8470engBelbute, José (2010), Is the Euro-Area Core Price Index Really More Persistent than the Food and Energy Price Indexes?, Documento de Trabalho nº 2010/03, Universidade de Évora, Departamento de Economia.15jbelbute@uevora.ptC14, C22, E31, E523_2010Universidade de Évora, Departamento de Economia e CEFAGE-UEBelbute, José Manuelinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2024-01-03T18:49:30Zoai:dspace.uevora.pt:10174/8470Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-20T01:02:42.826844Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Is the Euro-Area Core Price Index Really More Persistent than the Food and Energy Price Indexes? |
title |
Is the Euro-Area Core Price Index Really More Persistent than the Food and Energy Price Indexes? |
spellingShingle |
Is the Euro-Area Core Price Index Really More Persistent than the Food and Energy Price Indexes? Belbute, José Manuel Harmonized Index of Consumption Prices Core Inflation Euro Area Persistence |
title_short |
Is the Euro-Area Core Price Index Really More Persistent than the Food and Energy Price Indexes? |
title_full |
Is the Euro-Area Core Price Index Really More Persistent than the Food and Energy Price Indexes? |
title_fullStr |
Is the Euro-Area Core Price Index Really More Persistent than the Food and Energy Price Indexes? |
title_full_unstemmed |
Is the Euro-Area Core Price Index Really More Persistent than the Food and Energy Price Indexes? |
title_sort |
Is the Euro-Area Core Price Index Really More Persistent than the Food and Energy Price Indexes? |
author |
Belbute, José Manuel |
author_facet |
Belbute, José Manuel |
author_role |
author |
dc.contributor.author.fl_str_mv |
Belbute, José Manuel |
dc.subject.por.fl_str_mv |
Harmonized Index of Consumption Prices Core Inflation Euro Area Persistence |
topic |
Harmonized Index of Consumption Prices Core Inflation Euro Area Persistence |
description |
The purpose of this paper is to measure the degree of persistence of the overall, core, food and energy Harmonized Indexes of Consumer Prices for the European Monetary Zone (HICP-EAs) and to identify its implications for decision-making in the private sector and in public policy. Using a non-parametric approach, our results demonstrate the presence of a statistically significant level of persistence in four HICP-EAs: headline, core, food and energy. Moreover, contrary to popular belief, the core index does not reflect permanent price changes. We also find evidence that the food and energy price indexes are more volatile and more persistent than the other two price indexes. Our results also show a reduction in persistence for both the headline and the core price indexes after the implementation of the single monetary policy, but not for food and energy. These results have important implications for both the private sector and for policymakers who use the core as a reference price index for their decision-making because the use of this index can lead to an erroneous perception of price movements. |
publishDate |
2010 |
dc.date.none.fl_str_mv |
2010-01-01T00:00:00Z 2013-04-03T11:30:42Z 2013-04-03 |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10174/8470 http://hdl.handle.net/10174/8470 |
url |
http://hdl.handle.net/10174/8470 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
Belbute, José (2010), Is the Euro-Area Core Price Index Really More Persistent than the Food and Energy Price Indexes?, Documento de Trabalho nº 2010/03, Universidade de Évora, Departamento de Economia. 15 jbelbute@uevora.pt C14, C22, E31, E52 3_2010 Universidade de Évora, Departamento de Economia e CEFAGE-UE |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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