scholarly journals Price Statistics Compilation in 196 Economies

2019 ◽  
Vol 19 (163) ◽  
Author(s):  
Francien Berry ◽  
Brian Graf ◽  
Michael Stanger ◽  
Mari Ylä-Jarkko
Keyword(s):  
Policy Analysis ◽  
Price Index ◽  
Consumer Price Index ◽  
Economic Indicator ◽  
International Standards ◽  
Social Benefits ◽  
Scanner Data ◽  
Producer Prices

The consumer price index (CPI) is a key economic indicator used to gauge inflation, adjust wages, pensions, and social benefits. The producer prices index (PPI) is used for forecasting and deflating GDP estimates. Both indexes are used by the Fund, policymakers, and researchers for global, regional, and domestic surveillance. In this context, the paper evaluates the soundness of the indexes by assessing four major criteria: frequency of updating the weights, the index coverage, timeliness, and the use of international classifications. We discuss online and scanner data as frontier issues. The study shows that the CPI is universally and frequently compiled, timely, and fairly-well aligned with international standards. However, the weights used to compile the index are updated in only 45 percent of economies and have national coverage in 76 percent. PPIs, compiled by only 126 economies are timely, but there is scope for continued improvement as only 36 percent of economies have updated PPI weights and approximately 67 percent maintain the recommended coverage. Outdated weights impact the reliability of the indexes for policy analysis. Frequently updated weights and well-represented coverage mitigate against biases and ensure that the indexes properly measure the price evolution in the economy.

scholarly journals How Frequent Are Small Price Changes?

2014 ◽  
Vol 6 (2) ◽  
pp. 137-155 ◽  
Author(s):  
Martin Eichenbaum ◽  
Nir Jaimovich ◽  
Sergio Rebelo ◽  
Josephine Smith
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Empirical Work ◽  
Cost Models ◽  
Scanner Data ◽  
Micro Data ◽  
Price Changes ◽  
Nominal Rigidity ◽  
Menu Cost ◽  
Litmus Test

Recent empirical work suggests that small price changes are relatively common. This evidence has been used to criticize classic menu-cost models. In this paper, we use scanner data from a national supermarket chain and micro data from the Consumer Price Index to reassess the importance of small price changes. We argue that the vast majority of these changes are due to measurement error. We conclude that the evidence on the prevalence of small price changes is much too weak to be used as a litmus test of nominal rigidity models. (JEL C82, E31, L11, L81)

scholarly journals Tests for Price Indices in a Dynamic Item Universe

2019 ◽  
Vol 35 (3) ◽  
pp. 683-697
Author(s):  
Li-Chun Zhang ◽  
Ingvild Johansen ◽  
Ragnhild Nygaard
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Scanner Data ◽  
Price Indices ◽  
Cost Of Living ◽  
Quality Change ◽  
Large Index ◽  
New Goods ◽  
Cost Of Living Index ◽  
Index Family

Abstract There is generally a need to deal with quality change and new goods in the consumer price index due to the underlying dynamic item universe. Traditionally axiomatic tests are defined for a fixed universe. We propose five tests explicitly formulated for a dynamic item universe, and motivate them both from the perspectives of a cost-of-goods index and a cost-of-living index. None of the indices that are currently available for making use of scanner data satisfies all the tests at the same time. The set of tests provides a rigorous diagnostic for whether an index is completely appropriate in a dynamic item universe, as well as pointing towards the directions of possible remedies. We thus outline a large index family that potentially can satisfy all the tests.

Consumer Confidence Index in Vietnam: Scale Development and Compilation Methods

2019 ◽  
pp. 107-124
Author(s):  
Ha Hoang Thi Thanh ◽  
Bich Tran Thi
Keyword(s):  
Price Index ◽  
Consumer Price Index ◽  
Economic Indicator ◽  
Consumer Confidence ◽  
Specific Context ◽  
Short Term ◽  
Confidence Index ◽  
Nationally Representative ◽  
United Nations Statistics Division ◽  
Country Specific

A consumer confidence index (CCI) is an important economic indicator which is used to adjust the forecasting of gross domestic product (GDP) and consumer price index (CPI) in the shortterm. Although there exists standard guidelines from the United Nations Statistics Division and European Commission, international experience shows the scale that measures a CCI and the methods of calculating a CCI need to be adapted to the country specific context. Using its own data from the nationally representative survey and factor analysis methods, this paper constructs a scale to measure consumer confidence for Vietnam. The paper, then, computes a CCI and proposes the most appropriate method corresponding to the Vietnamese setting. Validation methods from the paper show that the Vietnamese CCI calculated in the paper reflects approximately the economic picture of the whole country as well as six regions of Vietnam, ensuring the validity of using this index to adjust short-term GDP and CPI forecasts.

scholarly journals Temporary Price Changes, Inflation Regimes, and the Propagation of Monetary Shocks

2020 ◽  
Vol 12 (1) ◽  
pp. 104-152
Author(s):  
Fernando Alvarez ◽  
Francesco Lippi
Keyword(s):  
Price Index ◽  
Price Level ◽  
Consumer Price Index ◽  
Monetary Shocks ◽  
Scanner Data ◽  
Optimal Plan ◽  
Price Changes ◽  
Inflation Rates ◽  
Wide Range ◽  
Menu Cost

We present a sticky price model that features the coexistence of many price changes, most of which are temporary, with a modest flexibility of the aggregate price level. Stickiness is introduced in the form of a price plan, namely a set of two prices: either price can be charged at any moment but changing the plan entails a menu cost. We analytically solve for the optimal plan and for the aggregate output response to a monetary shock. We present evidence consistent with the model implications using scanner data, as well as Consumer Price Index data across a wide range of inflation rates. (JEL D22, E31, E52, L11, O11, O23)

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 Analisis Indeks Harga Konsumen (IHK) Menurut Kelompok Pengeluaran Nasional Tahun 2018

2019 ◽  
Vol 3 (2) ◽  
pp. 110
Author(s):  
Halida Sofiah Noor ◽  
Cucu Komala
Keyword(s):  
Interest Rates ◽  
Price Index ◽  
Consumer Price Index ◽  
Economic Indicator ◽  
Index Number ◽  
Important Indicator ◽  
Goods And Services ◽  
Time Period ◽  
Rate Of Increase ◽  
Rate Of Decline

The Consumer Price Index is an important indicator of the financial market. The Consumer Price Index (CPI) is an index number that describes changes in prices of goods and services consumed by the public in general for a certain period with a predetermined time period. National expenditure according to CPI is divided into four sub-groups, namely the first general sub-group, the second sub-group of foodstuffs the third sub-group of processed foods, beverages, cigarettes and tobacco and fourth sub-group housing, water, electricity, gas and fuel development CPI 2018, every month from January to December tends to increase. Changes in CPI can describe the rate of increase (inflation) or the rate of decline (deflation) of goods or services. CPI can be regarded as a very important economic indicator and is used to represent changes in the average retail price level at the consumer level for a number of certain types of goods and services. The rise in the CPI can lead to an increase in interest rates, increase in money supply growth, increase the attractiveness of currencies, and increase inflation.

scholarly journals Modeling Consumer Price Index: An Empirical Analysis Using Expert Modeler

2019 ◽  
Vol 10 (1) ◽  
pp. 43-50 ◽  
Author(s):  
Chaitanya Singla ◽  
Pradeepta Kumar Sarangi ◽  
Sunny Singh ◽  
Ashok Kumar Sahoo
Keyword(s):  
Empirical Analysis ◽  
Price Index ◽  
Consumer Price Index ◽  
Economic Indicator ◽  
Forecasting Model ◽  
Goods And Services

Consumer price index (CPI) a popular economic indicator for India that represents the prices paid by customers for goods and services consumedby them.CPI is often used as an economic indicator that reflects the change in prices of goods and services over a period of time. In this work an attempt has been made to develop a forecasting model for India’s CPI for the period of May to December 2018. The data used in this work is the all-India CPI data for the period January 2013 - April 2018. SPSS Expert Modeler method has been used to fit the models and analyzing the data.

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