Multivariate Core Trend Inflation

Multivariate Core Trend (MCT) InflationA measure of the trend, or “persistent,” component of personal consumption expenditures (PCE) price inflation.www.newyorkfed.org Whether inflation is short-lived or persistent, concentrated in a few sectors or broad-based, is of deep relevance to policymakers. We estimate a dynamic factor model on monthly data for the major sectors of the personal consumpti..