PPI and Measuring Inflation in Business Transactions in Egypt

20 Pages Posted: 17 Mar 2008 Last revised: 3 Apr 2008

See all articles by Abdel-Hameed Nawar

Abdel-Hameed Nawar

New York University (NYU) - Department of Economics; Department of Economics - Faculty of Economics and Political Science - Cairo University

Date Written: March 26, 2008

Abstract

This paper discusses and analyzes selected pertinent statistical and economic questions raised by the shift in price statistics towards covering broader markets of the economy, namely introducing a Producers Price Index (PPI) series in place of the Wholesale Price Index (WPI) series in Egypt since the beginning of 2008. The paper discusses the price index gap in Egypt and the methodology employed in constructing the newly-introduced PPI. The paper proposes tackling several characterized problems concerning the construction of the elementary indices and quality of PPI statistics in light of e-commerce and globalization, existing limited coverage of service sectors, and improper indices for cost escalation and contracting. The paper also proposes devising a core inflation measure for inflation targeting in Egypt.

Keywords: Price statistics, Index number, Laspeyres Formula, PPI, Inflation-targeting

JEL Classification: C43, C81, C13, E31, L16

Suggested Citation

Nawar, Abdel-Hameed, PPI and Measuring Inflation in Business Transactions in Egypt (March 26, 2008). Available at SSRN: https://ssrn.com/abstract=1106416 or http://dx.doi.org/10.2139/ssrn.1106416

Abdel-Hameed Nawar (Contact Author)

New York University (NYU) - Department of Economics ( email )

269 Mercer Street, 7th Floor
New York, NY 10011
United States

Department of Economics - Faculty of Economics and Political Science - Cairo University ( email )

Cairo University
Giza, 12613
Egypt

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