The paper reviews the different concepts regarding inflation, highlighting some related consequences in refining the actual CPI. It also presents the concept and relevance of public understanding and “perception” of inflation, and discusses a comparison between COLI and COGI and the possible “convergence bias” of the official CPI. Also, the main conclusions of the Schultze and Mackie Report on the appropriate theoretical framework for CPI building are presented, as well as the main characteristics of the HICP, related to the points of view of Boskin’s and Schultze and Mackie’s reports.
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Find related papers by JEL classification: C43 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Index Numbers and Aggregation E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation