Abstract
Inflation measurement is the process whereby changes in the prices of individual goods and services are combined to yield a measure of general price change. This article discusses the conceptual framework for thinking about inflation measurement and considers practical issues associated with determining an inflation measure’s scope; with measuring individual prices; and with combining these individual prices into a measure of aggregate inflation. We also discuss the concept of ‘core inflation’ and summarize the implications of inflation measurement for economic theory and policy.
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Lebow, D.E., Rudd, J.B. (2018). Inflation Measurement. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_2051
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DOI: https://doi.org/10.1057/978-1-349-95189-5_2051
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