Russia Modified Core Inflation: truncation method

The truncation method assumes that components with extreme values are excluded every month and they change every month. The first specific feature of this approach is that the basket’s components are changed every month for the calculation of the core CPI. The second specific feature is that the trimming is conducted not for volatilities as was the case in the exclusion method but for the levels of monthly inflation. The Research and Forecasting Department calculates trend inflation estimates and modified core inflation. CPI data source: Rosstat. For details of methodology, see Deryugina et al (2015). Evaluating the underlying inflation measures for Russia. Working Paper Series, №4, March 2015.