Retail and Consumer Prices: an Explanatory Note

1980 ◽  
Vol 94 ◽  
pp. 73-76 ◽  
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Retail Price ◽  
Summary Table ◽  
Price Inflation ◽  
Consumer Prices ◽  
Explanatory Note

In this Review, as a response to comments from readers, we have replaced the consumer price index by the retail price index as a measure of annual price inflation in our Summary table of our forecast for the home economy. This note therefore sets out the differences between the two series in order to make the nature of the change clear.

scholarly journals Törnqvist Formula for Сalculating a Consumer Price Index in Russia: Theory and Practice

2020 ◽  
Vol 27 (5) ◽  
pp. 87-94
Author(s):  
М. A. Kozlova
Keyword(s):  
Price Index ◽  
Empirical Studies ◽  
Consumer Price Index ◽  
Theory And Practice ◽  
Consumer Market ◽  
Country Level ◽  
Consumer Prices ◽  
Realistic Description ◽  
The Difference ◽  
Main Consumer

The article reflects the author’s position on the adjustment of the so-called substitution bias, which affects the value of the consumer price index, currently calculated using the Laspeyres formula. The author proposes a solution to the problem of the adequacy of statistical measurements of the dynamics of consumer prices in the case when, as a result of changing cost of the consumer basket, a buyer replaces a relatively expensive product with a relatively cheaper one. This solution is based on the existing index construction methodology (axiomatic, economic and stochastic approaches). The article substantiates the use of the Törnqvist formula, which has better properties in comparison with other formulae used in the construction of superlative indices. The authors calculated the Törnqvist price index for Russia based on Rosstat methodology and data using country-level quarterly group price indices and shares of consumer spending. To evaluate the results of empirical testing Laspeyres price index was compiled using the same quarterly data as the Törnqvist index. The values of the Törnqvist price index in most cases are less than the price dynamics obtained according to the Laspeyres formula. This conclusion is proved both theoretically and empirically, and it is confirmed for Russia as well. However, due to the non-observance of the conditions of smooth trends in consumer prices, the difference between the values of the Törnqvist and Laspeyres indices is significantly larger in certain quarters than that presented in empirical studies in other countries. Consumer price index, calculated using the Törnqvist formula, in the system of indicators of price statistics in Russia can be defined as an indicator that specifies the main consumer price index. Calculation of its value is necessary for a more realistic description of the processes taking place in the consumer market.

scholarly journals ANALYSIS OF MONETARY FACTORS ON THE INCOME OF COASTAL FISHERMAN’S IN THE COVID-19 WEST ACEH REGENCY

2021 ◽  
Vol 2 (3) ◽  
pp. 37-50
Author(s):  
Leli Putri Ansari ◽  
Ivon Jalil ◽  
Yasrizal Yasrizal
Keyword(s):  
Quantitative Research ◽  
Price Index ◽  
Consumer Price Index ◽  
Least Square ◽  
Operational Cost ◽  
Cross Section Data ◽  
Price Inflation ◽  
Ordinary Least Square ◽  
Section Data ◽  
Aceh Province

This research aimed to analyze fisherman’s income according to monetary factors during covid-19 pandemic in coastal areas of West Aceh Regency in Aceh Province, Indonesia. This research applied cross-section data over 2021 by utilizing descriptive quantitative research and OLS model analysis (Ordinary Least Square). Research revealed monetary factors in term of the inflation of groceries price had negative influenced to the fisherman income at West Aceh Regency, mean while the variable of diesel price had positive influenced to fisherman income. During covid-19 pandemic, there was the increasing of groceries price (inflation) at 1,06 times or the consumer price index (CPI) of groceries price at 106 percent but the price of diesel was still same as before covid-19 pandemic because fisherman used subsidized fuel at Rp 5.150/liter. However, the quota of subsidized diesel did not fulfill the fisherman needs so that they must buy non subsidized diesel. It was impacted on the fishing operational cost which was bigger than fisherman income. Moreover, during covid-19 pandemic the average of fisherman income decrease at IDR 1.500.000-IDR 3.000.000 each trip compared with before covid-19 pandemic at IDR 5.000.000- IDR 7.000.000 each trip. It was caused by low fish price which was caused by the decreasing of fish demand.

Regional Consumer Price Differences Within Germany

2010 ◽  
Vol 230 (6) ◽  
Author(s):  
Stefan Linz
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Sufficient Information ◽  
Price Development ◽  
Price Data ◽  
Ex Post ◽  
Consumer Prices ◽  
Information Demand ◽  
Price Comparisons ◽  
Over Time

SummaryEvery month the Consumer Price Index for Germany (CPI) provides comprehensive and detailed information regarding the price development over time. However, when differences in the price level across regions in Germany have to be analysed at a given point in time, sufficient information is not available at present.Interest in regional consumer price data is shown by both scientists and policy makers. Currently, this information demand is not met as regional consumer prices or regional price comparisons are not provided by the Federal Statistical Office in Germany.Data available from the German Consumer Price Index is suitable to follow the price development over time but cannot be used directly to compare price levels of different regions because the goods tracked may be different from region to region.The article first considers the information demand and gives an overview of existing price data. Its main part refers to an empirical study which was conducted to check if existing Consumer Price Index data can be used to calculate regional consumer price comparisons by ex-post selecting comparable products.

Retail and Consumer Prices, 1955-1963

1964 ◽  
Vol 30 ◽  
pp. 44-51 ◽  
Author(s):  
W. A. H. Godley ◽  
D. A. Rowe
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
National Income ◽  
Food Prices ◽  
The Other ◽  
Short Term ◽  
Unit Costs ◽  
Correct Analysis ◽  
Consumer Prices ◽  
Retail Prices

This paper gives an account of a method of forecasting the Ministry of Labour's retail prices index, and of deriving from it a forecast of the consumer price index. (This is the index used in the National Income statistics to deflate the value of consumers' expenditure to volume terms.) Good forecasting obviously has to be based on a correct analysis of the factors which determine price changes; the article throws light on the way in which cost changes are taken into account when prices are changed. It seems that retail prices (apart from seasonal food prices) do not respond directly to short-term fluctuations in demand and output. Businessmen do not raise prices because demand suddenly rises; nor on the other hand do they lower them when output moves up sharply and unit costs fall. The analysis, therefore, provides further support for the ‘normal cost’ theory of pricing—that businessmen set prices by calculating their costs when working at some normal capacity, and add a conventional margin.

Observed retail price of Australia’s market-leading cigarette brand before and up to 3 years after the implementation of plain packaging

2018 ◽  
Vol 28 (e2) ◽  
pp. e86-e91 ◽  
Author(s):  
Sam Egger ◽  
Suzan Burton ◽  
Rebecca Ireland ◽  
Scott C Walsberger
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Retail Price ◽  
Plain Packaging ◽  
Cigarette Brand ◽  
Retail Outlets ◽  
Change In Mean ◽  
Generalised Estimating Equations ◽  
Over Time ◽  
Cigarette Prices

ObjectiveDespite claims by tobacco companies that plain packaging would lead to lower cigarette prices, recommended and observed real cigarette prices in Australia rose in the 9–11 months after plain packaging was introduced. However, little is known about trends in prices longer term. In this report, we assess whether inflation (Consumer Price Index; CPI) and tax adjusted (‘CPI-tax-adjusted’) prices of the market-leading Australian cigarette brand changed in the 3-year period after plain packaging, and whether price changes were associated with retailer characteristics.MethodCigarette prices were ascertained from a panel of tobacco retailers at three time points: (1) in November 2012 (n=857) (before full implementation of plain packaging, compulsory in retail outlets from December 2012), (2) between October 2014 and February 2015 (n=789) and (3) between November 2015 and March 2016 (n=579). Generalised estimating equations were used to estimate percentage change in mean CPI/tax-adjusted cigarette prices over time.ResultsCPI/tax-adjusted adjusted mean stick prices rose by 13.7% (95% CI 13.0 to 16.0) and 15.2% (95% CI 14.3 to 16.0) at 2.1 and 3.1 years after plain packaging was introduced, respectively. Increases in mean CPI/tax-adjusted stick prices varied by outlet type (p<0.001), socioeconomic status (p=0.013) and remoteness of retailer’s area (p=0.028) and whether twin packs were sold (p=0.009).ConclusionsContrary to tobacco company predictions of a fall in prices, the price of the market-leading Australian cigarette brand increased significantly in the 3 years after plain packaging was introduced, and these increases were above the combined effects of inflation and increases in excise/customs duty.

Inflation Dynamics and Monetary Policy in India: A New Keynesian Phillips Curve Perspective

2019 ◽  
Vol 8 (2) ◽  
pp. 144-179 ◽  
Author(s):  
Bhavesh Salunkhe ◽  
Anuradha Patnaik
Keyword(s):  
Price Index ◽  
Phillips Curve ◽  
Consumer Price Index ◽  
Wholesale Price ◽  
New Keynesian ◽  
Real Effective Exchange Rate ◽  
Output Gap ◽  
Moderate Degree ◽  
New Keynesian Phillips Curve ◽  
Price Inflation

The present study estimates various specifications of the New Keynesian Phillips Curve (NKPC) models for India over 1996Q2 to 2017Q2 using Consumer Price Index (CPI) and Wholesale Price Index (WPI) inflation, separately. The empirical results suggest that the data support all the specifications of the Phillips curve models based on both the CPI and WPI inflations. However, the backward looking and hybrid models provide robust results for both the inflation indices. While the forward-looking behaviour dominates the CPI inflation trajectory, the backward-looking behaviour greatly influences the trajectory of WPI inflation. Also, a small-to-moderate degree of persistence is evident in both the CPI and WPI inflation. The output gap, which mainly represents the demand side pressures, turns up the major force determining both the CPI and WPI inflations. Besides the output gap, real effective exchange rate (reer), international crude oil price inflation, global non-fuel commodity price inflation and rainfall have a modest impact on the CPI and WPI inflations. JEL Classification: E12, E52, C36, C14

Structure and Food Price Inflation

2017 ◽  
Vol 16 (1) ◽  
Author(s):  
Ilya Rahkovsky ◽  
Richard Volpe
Keyword(s):  
Market Structure ◽  
Price Index ◽  
Consumer Price Index ◽  
Market Concentration ◽  
Food Prices ◽  
Food Price ◽  
Retail Market ◽  
Food Markets ◽  
Price Inflation ◽  
Market Shares

AbstractWe pair Nielsen TDLinx data, 2004–2014, with Consumer Price Index data to investigate how changes in food retail market structure drive food price inflation. We find, in corroboration with much of the evidence to date, that market concentration is positively and significantly associated with higher food prices. We find the same to be true for store format concentration, or the homogeneity of food markets. As the market shares, or penetration, of supercenters, warehouse stores, limited assortment stores, and superettes increase at expense of traditional supermarkets, food price inflation decreases.

scholarly journals Sources of Bias and Solutions to Bias in the Consumer Price Index

2003 ◽  
Vol 17 (1) ◽  
pp. 23-44 ◽  
Author(s):  
Jerry Hausman
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Second Order ◽  
Order Effects ◽  
Scanner Data ◽  
Cost Of Living ◽  
First Order ◽  
Consumer Prices ◽  
Substitution Bias ◽  
Cost Of Living Index

Four sources of bias in the Consumer Prices Index (CPI) have been identified. The most discussed is substitution bias, which creates a second order bias in the CPI. Three other changes besides prices changes create first order effects on a correctly measured cost of living index (COLI). I explain in this paper that a “pure price” based approach of surveying prices to estimate a COLI cannot succeed in solving the 3 problems of first order bias. I discuss economic and econometric approaches to measuring the first order bias effects as well as the availability of scanner data that would permit implementation of the techniques.

scholarly journals An Assessment of the ISM Price Indexes for Inflation Forecasting

2018 ◽  
pp. 1-6
Author(s):  
Mark J. Bognanni ◽  
Tristan Young
Keyword(s):  
Price Index ◽  
Supply Management ◽  
Price Inflation ◽  
Inflation Forecasts ◽  
Inflation Forecasting ◽  
Consumer Prices ◽  
Price Indexes ◽  
Producer Prices ◽  
Predictive Content

The Institute for Supply Management produces a measure of pricing trends, the manufacturing price index or ISMPI, that is constructed from its periodic surveys of purchasing and supply executives. We investigate this measure’s predictive content for producer and consumer price inflation by assessing its ability to improve inflation forecasts for three broad monthly inflation measures. We find that the ISMPI has some predictive content for producer prices but not for consumer prices.

Chapter I. The Home Economy

1978 ◽  
Vol 83 ◽  
pp. 7-23
Keyword(s):  
Great Britain ◽  
Price Index ◽  
Consumer Price Index ◽  
Final Demand ◽  
Balance Of Payments ◽  
Real Output ◽  
Price Inflation ◽  
Public Consumption ◽  
Private And Public

Total real output stagnated completely in 1977. Private and public consumption and gross fixed investment all fell, but this was slightly more than offset by relatively buoyant exports and by some restocking. Despite the very small increase in total final demand, the volume of imports rose by about 4 1/2 per cent, leaving gross domestic product virtually unchanged from its 1976 level. Unemployment rose, albeit erratically, by under 100 thousand during the year, and stood at just under 1.4 million in January of this year (Great Britain, excluding school leavers, seasonally adjusted). The rate of consumer price inflation began to fall in the second half of 1977; the consumer price index is estimated to have been just under 13 per cent higher than a year earlier in the last quarter. The balance of payments on current account moved into surplus in the second half of the year, but revisions to the official estimates of invisible trade mean that the surplus for the year as a whole is now estimated to have been only about £100 million.

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