Prices Indices and Inflation Measurement: Scanner Data Challenge
| Authors | |
|---|---|
| Year of publication | 2018 |
| Type | Article in Proceedings |
| Conference | 36th International Conference Mathematical Methods in Economics |
| MU Faculty or unit | |
| Citation | |
| Keywords | Consumer Price Indices; CUSUM test; Missing Inflation; Scanner data |
| Description | The Great Recession of 2008, connected to extremely low inflation rates and Zero Lower Bound, resulted in the unconventional monetary policy of central banks. Moreover, shortly after the end of the bust, several national statistical bureaus started to use completely new method of collecting data on consumer prices. The aim of this contribution is to explain how the calculation of the Consumer Price Index changed with scanner data introduction. We summarise the key features of the scanner data and test hypothesis on change of the inflation ratio both in terms of mean and volatility after the implementation of Scanner Data Approach in Belgium and Denmark in comparison to their pair countries (France and Finland). We found that there was no structural change in Danish inflation time series, but there was upward shift in Belgium time series even in comparison to France. Our results can contribute to the current discussion on the introducing the scanner data by the Czech Statistical Office. |
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