New Inflation Gauge for China Improves Forecasting Accuracy and Reduces Volatility
A new inflation gauge for China was developed to help predict future inflation rates more accurately. This gauge, called CUIG, separates long-term trends from short-term fluctuations and uses a wide range of factors that can affect inflation. It is less noisy than traditional measures and closely follows the official inflation rate. CUIG provides extra insights and performs better than standard measures when forecasting future inflation rates.