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Inflation Rate Differentiation Based on Different Price Indexes

Lihua He

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Abstract

The common indexes of measuring inflation rate include Gross Domestic Product Deflator(GDP Deflator),Consumer Price Index(CPI),Producer Price Index(PPI)and Retail Price Index,but there is great inflation rate differentiation caused by different price indexes,which bring about different impact on government policies,as well as common consumers' expectation.The ignorance or neglection of it often results in the disconnection between theory and practice.The paper finds out the reasons for this differentiation.

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What this paper is about

The common indexes of measuring inflation rate include Gross Domestic Product Deflator(GDP Deflator),Consumer Price Index(CPI),Producer Price Index(PPI)and Retail Price Index,but there is great inflation rate differentiation caused by different price indexes,which bring about different impact on government policies,as well as common consumers' expectation.The ignorance or neglection of it often results in the disconnection between theory and practice.The paper finds out the reasons for this differentiation.

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Available abstract

The common indexes of measuring inflation rate include Gross Domestic Product Deflator(GDP Deflator),Consumer Price Index(CPI),Producer Price Index(PPI)and Retail Price Index,but there is great inflation rate differentiation caused by different price indexes,which bring about different impact on government policies,as well as common consumers' expectation.The ignorance or neglection of it often results in the disconnection between theory and practice.The paper finds out the reasons for this differentiation.

Key concepts: GDP deflator, Economics, Producer price index, Consumer price index (South Africa), Inflation (cosmology), Index (typography), Price index, Inflation rate

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