Price Statistics Compilation in 196 Economies: The Relevance for Policy Analysis

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,...

Full description

Bibliographic Details
Main Author: Berry, Francien
Other Authors: Graf, Brian, Stanger, Michael, Ylä-Jarkko, Mari
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2019
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
LEADER 02771nmm a2200445 u 4500
001 EB001892638
003 EBX01000000000000001055785
005 00000000000000.0
007 cr|||||||||||||||||||||
008 200301 ||| eng
020 |a 9781513508313 
100 1 |a Berry, Francien 
245 0 0 |a Price Statistics Compilation in 196 Economies: The Relevance for Policy Analysis  |c Francien Berry, Brian Graf, Michael Stanger, Mari Ylä-Jarkko 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2019 
300 |a 28 pages 
653 |a Price indexes 
653 |a Inflation 
653 |a General Aggregative Models: General 
653 |a Monetary economics 
653 |a Inflation targeting 
653 |a Deflation 
653 |a Consumer price indexes 
653 |a National accounts 
653 |a National income 
653 |a Price Level 
653 |a Producer price indexes 
653 |a Macroeconomics 
653 |a Monetary policy 
653 |a Monetary Policy 
653 |a Money and Monetary Policy 
700 1 |a Graf, Brian 
700 1 |a Stanger, Michael 
700 1 |a Ylä-Jarkko, Mari 
041 0 7 |a eng  |2 ISO 639-2 
989 |b IMF  |a International Monetary Fund 
490 0 |a IMF Working Papers 
028 5 0 |a 10.5089/9781513508313.001 
856 4 0 |u https://elibrary.imf.org/view/journals/001/2019/163/001.2019.issue-163-en.xml?cid=48517-com-dsp-marc  |x Verlag  |3 Volltext 
082 0 |a 330 
520 |a 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