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Inflation Bias after the Euro: Evidence from the UK and Italy

  • Giancarlo Marini

    ()

    (University of Rome II - Faculty of Economics)

  • Alessandro Piergallini

    ()

    (University of Rome II)

  • Pasquale Scaramozzino

    ()

    (University of Rome II - Faculty of Economics
    University of London - School of Oriental and African Studies (SOAS))

This paper presents an indirect approach to investigate the possible existence of measurement error bias in the Harmonized Index of Consumer Prices for the UK and Italy. Our empirical results show that there is no significant evidence for a bias in the UK, nor for Italy prior to the introduction of the Euro. Since January 2002, however, the inflation rate in Italy has been underestimated by at least 6 percentage points.

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File URL: ftp://www.ceistorvergata.it/repec/rpaper/No-60-Marini-Piergallini-Scaramozzino.pdf
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Paper provided by Tor Vergata University, CEIS in its series CEIS Research Paper with number 60.

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Length: 20
Date of creation: 14 Oct 2004
Date of revision:
Handle: RePEc:rtv:ceisrp:60
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