Proceedings of the IFC Workshop on "CPI measures: central bank views and concerns", Basel, April 2006

IFC Bulletin No 24
August 2006

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Message from the chair Jan Smets	5

Proceedings of the IFC Workshop on CPI measures: central bank views and concerns, 20 and 21 April 2006

Overview of the workshop	9

Session 1: International methodological standards for CPI and national practices
Chair: William White (Bank for International Settlements)	13
Background note and key issues for discussion	14
The CPI manual and IMF statistical capacity building Mick Silver	17
International methodological standards for CPI and national practices Marianne Collin	19
Comparison of consumer price indices for the euro area, the United States and Japan Gabriel Quirós	33
Measurement errors in the Japanese CPI Shigenori Shiratsuka	36
Summary of discussion	44

Session 2: Inflation measures from the perspective of monetary policy
Chair: Shigenori Shiratsuka (Bank of Japan)	45
Background note and key issues for discussion	46
Inflation measures from a monetary policy perspective Laurent Bilke	52
Alternative measures of Inflation Jeremy Rudd	53
Inflation measures from the perspective of monetary policy: The case of Brazil Jose Ricardo da Costa e Silva	55
Summary of discussion	58

Session 3: The measurement of housing services in the CPI
Chair: Javier Salas (Banco de México)	61
Background note and key issues for discussion	62
The treatment of owner-occupied housing in the harmonised index of consumer prices Martin Eiglsperger	68
Measurement of housing services in the CPI: The Measurement of owner-occupied housing in Sweden Jesper Johansson	80
The measurement of housing services in the CPI: The case of Hong Kong Li-Gang Liu	81
Summary of discussion	84

Session 4: Dealing with quality adjustments
Chair: Johannes Hoffmann (Deutsche Bundesbank)	85
Background note and key issues for discussion	86
Adjustments for quality change and new goods Mick Silver	91
The US experience with quality adjustment Jeremy Rudd	93
Summary of discussion	96

Session 5: Other measurement issues of concern to central banks
Chair: Luc Aucremanne (National Bank of Belgium)	97
Background note and key issues for discussion	98
Price index measurement in Mexico Javier Salas	103
Administered prices in the French HICP Valérie Chauvin	112
Change in price collection method for the compilation of the South African CPI Peter Weideman	114
Summary of discussion	116

Session 6: Measures of core or underlying inflation
Chair: Roberto Sabbatini (Bank of Italy)	119
Background note and key issues for discussion	120
Core inflation: Definitions and measures Robert Sabbatini	127
The Canadian Experience with core inflation Thérèse Laflèche	134
Core inflation measures: The case of Poland Jaroslaw T Jakubik	136
Core inflation measurement at the Riksbank Jesper Johansson	140
Summary of discussion	142

Session 7: Quantifying the measurement bias in CPIs
Chair: Mark Wynne (Federal Reserve Bank of Dallas)	145
Background note and key issues for discussion	146
Measurement error in the US CPI Jeremy Rudd	152
The accuracy of the HICP: a comment on recent contributions Diego Rodriguez-Palenzuela	156
The "Index of perceived inflation (IPI)" for Germany: Conceptual principles and shortcomings Hans-Albert Leifer	160
Summary of discussion	164

Session 8: Central bank input into national and international discussions on CPI methodology
Chair: Gabriel Quirós (ECB)	165
Background note and key issues for discussion	166
The Bundesbank's contribution to the inflation measurement debate in Germany Johannes Hoffmann	168
Summary of discussion	173

Annotated list of other background papers	175

Background material	187

The basic statistical returns system – a mirror to the trends in Indian banking Pardeep Maria and Praggya Das	198

Proceedings of the IFC Workshop on "CPI measures: central bank views and concerns", Basel, April 2006

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