Inflation Measurement

17 Pages Posted: 14 Dec 2006

See all articles by Jeremy B. Rudd

Jeremy B. Rudd

Board of Governors of the Federal Reserve System

David E. Lebow

Board of Governors of the Federal Reserve System

Multiple version iconThere are 2 versions of this paper

Date Written: October 2006

Abstract

Inflation measurement is the process through which changes in the prices of individual goods and services are combined to yield a measure of general price change. This paper 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.

Keywords: Index numbers, price indexes, cost-of-living index

JEL Classification: G43, E31

Suggested Citation

Rudd, Jeremy B. and Lebow, David E., Inflation Measurement (October 2006). FEDS Working Paper No. 2006-43, Available at SSRN: https://ssrn.com/abstract=951414 or http://dx.doi.org/10.2139/ssrn.951414

Jeremy B. Rudd (Contact Author)

Board of Governors of the Federal Reserve System ( email )

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David E. Lebow

Board of Governors of the Federal Reserve System ( email )

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Washington, DC 20551
United States
202-452-3057 (Phone)
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