The dashboard officials will consult includes “permanent exclusion-based measures” that strip out certain more volatile items, “temporary exclusion-based measures” that disregard some volatile dynamics, and “model-based measures” that rely on economic relations to identify stickiness.
While outgoing executive board member Fabio Panetta said Thursday that underlying inflation pressures were moderating, he offered a different analysis. Empirical evidence suggests so-called core price growth “is a lagging – not a leading – indicator,” he said. It identified domestic inflation, PCCI – Persistent and Common Component of Inflation – and HICPXX, which excludes energy, food, travel-related items and clothing and footwear as generally doing better than others.