Working Papers present research work by both Danmarks Nationalbank’s employees and our partners. Working Papers are primarily targeted at professionals and people with an interest in central banking research as well as economics and finance in a broader sense.
An alternative measure of core inflation
We combine the ideas of the trimmed mean and the Edgeworth index to construct an alternative measure of core inflation named "Trim of Most Volatile Components (TMVC)". At each point of time this measure trims away the components of the price index, which have been most volatile in the past. TMVC tracks trend inflation better than other core inflation measures in the euro zone, but in the US the evidence is weaker.