Inflation measurement in times of economic distress

Omiros Kouvavas, Riccardo Trezzi, Bernhard Goldhammer and Jakob Nordeman

Economic Bulletin Boxes, 2020, vol. 3

Abstract: In this box we review price measurement issues that can arise in times of economic distress. First, we discuss how consumers’ substitution across items in the face of an economic downturn can drive a wedge between published statistics and household consumption prices. We present some evidence from previous recessions along with the historical weights of the aggregated HICP. Second, we discuss additional challenges generated by the ongoing Coronavirus outbreak. Lastly, we discuss possible implications for policymakers. JEL Classification: E2, E3, E4

Keywords: HICP weights; Inflation measurement (search for similar items in EconPapers)
Date: 2020-05
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Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbbox:2020:0003:4

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