SBP develops new method of measuring core inflation

State Bank of Pakistan (SBP) has developed a new method “Relatively Stable Component of CPI (RSC-CPI)” for measurement of core inflation by permanently excluding relatively volatile commodities from Consumer Price Index (CPI) basket. Commodities that were trimmed out more than 13 times during Jul.’08 to Feb.’13 have been permanently excluded from the CPI basket. The In this new method, SBP’s RSC-CPI include fifty commodities with a weight of 67.69.

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