Abstract:
This study examines the inflation persistence using both online and official price
indexes in Argentina, Brazil, China, Japan, Germany, South Africa, the UK and the
US, using fractional integration technique. The main results suggest that the degree of
persistence, estimated by the long-memory parameter, is smaller when using online
price indexes (believed to be a more realistic measure of inflation), mainly in the
cases of Argentina, Brazil, China and the UK. Monetary policy implications are
discussed.