Journal Article
Does headline inflation converge to core?
Abstract: Recent surges in food and energy prices have pushed up headline inflation to levels well above its underlying trend. In contrast, core inflation, which excludes food and energy prices, has remained low and stable. Historical data suggest that, since the early 1990s, headline inflation has tended to converge toward core inflation. Thus, high inflation is unlikely to persist as long as inflation expectations remain anchored.
Keywords: Inflation (Finance);
Access Documents
File(s): File format is text/html http://www.frbsf.org/publications/economics/letter/2011/el2011-24.html
File(s): File format is application/pdf http://www.frbsf.org/publications/economics/letter/2011/el2011-24.pdf
Authors
Bibliographic Information
Provider: Federal Reserve Bank of San Francisco
Part of Series: FRBSF Economic Letter
Publication Date: 2011
Order Number: 24