Philippine Standard time

Monthly Deflator-Based Inflation Measures Complement CPI-Based Inflation


This study addresses the frequency mismatch by applying the dynamic temporal disaggregation framework of Poissonnier (2017) to construct monthly estimates of nominal and real quarterly national accounts series. The chosen temporal disaggregation method requires one or more monthly indicators. The number of monthly indicators, and their corresponding characteristics, as well as the number of past periods of the nominal and real series to be considered, are critical to model specification and can affect the resulting monthly estimates. The disaggregated series are then used to generate monthly deflators, which allows for the calculation of monthly inflation measures that complement CPI inflation.



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