tag:blogger.com,1999:blog-4202640171587061962.post1998124969042286628..comments2023-04-11T13:47:28.049+03:00Comments on macro.tragedy: Are the Greek inflation readings representative of the actual inflation...?Nickhttp://www.blogger.com/profile/08877745854003049438noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4202640171587061962.post-53092422514088141992011-03-29T20:14:23.859+03:002011-03-29T20:14:23.859+03:00I think that you didn't get what I am talking ...I think that you didn't get what I am talking about here, maybe I wasn't clear...CPI is calculated by using a basket of goods, which according to the households finances survey are deemed typical for Greek households...I am talking about the weights of individual goods in computing inflation, whether inflation spiked or fell over that period is irrelevant, what matters is what disposable income did...when disp.income falls, basic goods, like food or housing tend to get a larger part of the remaining income since they are in a large part inelastic...so, when disp.income falls, weights of the goods included in the basket should be adjusted to reflect actual inflation faced by consumers....this is displayed pretty clearly by the chart about Latvia, these are not prices about Housing or Fuel or Food these are their weightings when calculating CPI...I hope I was more clear now...<br />If you're not bored you could check the official press release about CPI, to see first-hand what I'm talking about look at martix 1...<br /><br />http://www.statistics.gr/portal/page/portal/ver-1/ESYE/BUCKET/A0515/PressReleases/A0515_DKT87_DT_MM_12_2010_01_F_GR.pdfNickhttps://www.blogger.com/profile/08877745854003049438noreply@blogger.comtag:blogger.com,1999:blog-4202640171587061962.post-2069121317684089962011-03-29T19:55:46.069+03:002011-03-29T19:55:46.069+03:00I am not quite aware of the issue analysed here, b...I am not quite aware of the issue analysed here, but are you sure that the variables like fuels and electricity are not included in the housing index for example? Moreover, I would understand your argument if the inflation percentage remained stable the last year but this is not the case. The inflation percentage did grow up after the rise in gas taxation for example as well as after the rise of electricity prices. I do not really unbderstand how you see miscalculations........Anonymoushttps://www.blogger.com/profile/15305833331123831421noreply@blogger.com