Abstract Existing measures of core inflation ignore a part of ‘should be’ the core inflation. Exclusion based measures ‘exclude’ a part of persistent inflation inherently existing in the excluded part whereas filter based measures ‘filter-out’ the cyclical part also rather than the irregular component only. This study proposes a new idea to define and measure core inflation – noise free inflation or denoised inflation. As against considering only trend to define core inflation, this study proposes using cyclical component also to be part of core inflation. If core inflation is to be useful, for monetary policy making, as an indicator of underlying inflation, it has to include demand related component of inflation associated with current economic cycle. By using wavelet analysis approach to decompose seasonally adjusted price index into noise, cyclical component and trend, we estimate a denoised inflation series for Pakistan for the period July 1992 to June 2017. Since denoised inflation passes ‘statistical’ as well as ‘theoretical’ tests necessary for a series to be core inflation, we think it can be used as a new core inflation measure for Pakistan. This can also be estimated and tested for any country.

中文翻译：

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降噪通货膨胀：核心通货膨胀的新测度

摘要现有的核心通货膨胀措施忽略了“应该是”核心通货膨胀的一部分。基于排除的措施“排除”了排除部分固有存在的持续性通货膨胀的一部分，而基于过滤器的措施也“过滤”了周期性部分，而不仅仅是“不定期”部分。这项研究提出了一种定义和衡量核心通货膨胀的新想法-无噪声通货膨胀或去噪通货膨胀。与仅考虑定义核心通胀的趋势相反，本研究建议也将周期性成分也用作核心通胀的一部分。如果核心通胀对货币政策制定有用，以作为基础通胀的指标，则必须包括与当前经济周期相关的需求相关通胀组成部分。通过使用小波分析方法将经过季节性调整的价格指数分解为噪声，周期性成分和趋势，我们估计了1992年7月至2017年6月期间巴基斯坦的去噪通胀序列。由于去噪通胀通过了一系列要成为核心通胀率所必需的“统计”和“理论”检验，因此我们认为可以用作巴基斯坦新的核心通胀指标。也可以针对任何国家进行估算和测试。