Global Data Pod LATAM: A COVID-core metric for Brazil

• On top of humanitarian and economic damage, COVID-19 has challenged to economic data analysis
• In particular, existing core CPI metrics may not be the best gauge of underlying inflation given the many supply and demand shocks involved in this crisis
• We use the methodology of Shapiro (2020) to decompose core EX0 inflation…
• …and we use part of this decomposition to propose a new Core-COVID IPCA

The objective of this metric is to avoid confusing temporary fluctuations with a more structural inflationary process. In our view, using this new core along with other measures would be useful to understand inflation dynamics.

 

This podcast was recorded on July 7, 2021.

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