Disinflation study reveals better ways to predict future inflation trends!
The article explores different ways to measure inflation during periods of decreasing inflation rates. By creating artificial scenarios of decreasing inflation, the researchers tested various methods of measuring underlying inflation. They found that simpler methods were more accurate in predicting inflation during these periods compared to more complex methods. Additionally, they showed that a specific type of model can be used to extract trends in inflation data for better measurement of underlying inflation.