Inflation measurement

Inflation measurement

by David Edward Lebow

Part of Finance and economics discussion series -- 2006-43

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"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"--Federal Reserve Board web site.

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