"Official" Inflation and "Real" Inflation
3 Citations•2013•
K. P. Glushchenko
Problems of Economic Transition
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Abstract
The mass media frequently accuse official statistics of underestimating the inflation rate by half to two-thirds. And, as opposed to the "official" inflation, they report data on "real" inflation, which, it is claimed, reflect the true situation. The article describes the methodology by which the inflation rate is estimated by official statistics and analyzes potential sources of distortion of the estimate, concluding that the accusations are unfounded. It examines how "real" inflation is estimated and shows that it has nothing in common with reality: it is nothing more than "economic pop music."