8 However, these theory-based approaches tend to be rather complex and require faith that the model they are based on is the right one. Each of these measures of core inflation can be evaluated according to a variety of criteria, including the ability to forecast headline inflation over some period and the degree of correlation with alternative definitions of trend inflation.
According to some of these criteria, statistical and theory-based approaches are sometimes found to outperform simpler exclusion measures of core inflation, like the standard one excluding food and energy.