Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/284179 
Year of Publication: 
2023
Series/Report no.: 
Cardiff Economics Working Papers No. E2023/17
Publisher: 
Cardiff University, Cardiff Business School, Cardiff
Abstract: 
This study has adopted the actual household expenditure data from the national accountstoconstruct a true inflation rate (using the Fisher index) and found that the official inflationrateinthe 33 OECD countries was an overestimate of true inflation for 22 and underestimate in11countries in the first wave of the COVID-19 pandemic. The result obtained for the countrieswhere true inflation was higher than the official rate in this study matches the results obtainedbyCavallo (2020) and Reinsdorf (2020). However, a significant difference has been detectedfor thecountries where the official inflation exceeds the true measure in this study. The core reasonbehind the discrepancies is in the use of appropriate expenditure weights. This suggests cautionin using credit-card based expenditure data when spending behaviour has changed dramatically.
Subjects: 
Coronavirus (COVID-19)
Pandemic
Inflation measurement
Household Final Consumption Expenditure (HHFCE)
Consumer Price Index (CPI)
JEL: 
C43
E01
E31
I10
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.