Research published by the Central Bank of Colombia contends “conventional” core inflation measures in the region “might be overstating” its true level.

In Inflation expectations and a model-based core inflation measure in Colombia, Hernando Vargas creates a model-based core inflation measure that addresses the “shortcomings of traditional exclusion measures” when supply shock impacts are widespread and persistent.

Vargas highlights the negative impact the recent depreciation shock has had on the