A method for compressing a digital input signal to provide a compressed signal, the method comprising the steps of:
- deriving spectral components from the digital input signal;
- dividing the spectral components into critical bands;
- dividing the spectral components in a critical band into blocks having a bandwidth narrower than the critical band;
- applying block floating processing to the blocks to generate a floating coefficient for each block;
- quantizing the spectral components in each block using a number of bits allocated to the block according to an allowed noise level for the critical band, the number of bits allocated being indicated by a word length;
- and
- including in the compressed signal the word length for each block, and, instead of the floating coefficient for each block, the allowed noise level for the critical band.