Although not commonly used as a measure of core inflation, a potentially useful alternative to the CPI ex food and energy is the CPI excluding just energy.
15) Bryan, Cecchetti, and Wiggins argue that, by excluding a fixed set of components, measures like the CPI ex food and energy, CPI ex energy, and CPI ex 8 components will sometimes include large price changes that are relative price changes.
Some might prefer that trend inflation be computed with the CPI ex food and energy or estimated with a more sophisticated statistical approach such as that developed by Baxter and King.
By contrast, the trend volatility of the CPI ex food and energy, the most commonly used measure of core inflation, was considerably higher, at about 2.
Overall, in tracking trend inflation, the CPI ex energy matches or outperforms the CPI ex food and energy.
error) t-statistic 1-year ahead (b=12) CPI ex food and energy .
The Federal Reserve's recent monetary policy reports to Congress have included discussions of consumer prices ex food and energy (Board of Governors of the Federal Reserve System).
In communicating with the public, the CPI ex food and energy and CPI ex energy may be preferable to the other three indicators of core inflation, which are more complex.
The CPI ex energy measures trend inflation at least as accurately as the CPI ex food and energy, and it represents one of the most powerful predictors of future inflation.
4) This relationship holds only approximately for inflation in the CPI, CPI ex food and energy, and CPI ex energy.
The BLS did not begin publishing the CPI ex food and energy until 1978.
The CPI ex 8 components and CPI ex food and energy remove 11.