Titlebook: Inflation; History and Measurem Robert O‘Neill,Jeff Ralph,Paul A. Smith Book 2017 The Editor(s) (if applicable) and The Author(s) 2017 Econ

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Collecting Prices,ems available at any given point in time (or a complete list of transaction prices), it is required that only a sample of prices is collected each period. This chapter considers how ONS goes about collecting the large number of price quotes needed in order to provide the raw material required in producing a price index such as the CPI.

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,From the RPI to the CPI: 1990–2011, period also includes the development of a formal inflation targeting regime in the UK, with the target specified in terms of annual changes in the Retail Prices Index. This is followed by the development of the Harmonised Index of Consumer Prices by the European Union, the UK implementation of which is the Consumer Prices Index.

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Other Price Indices, business indices have been introduced in recent times, and Import and Export Price Indices and Services Producer Price Indices are also described. Some other types of price indices are briefly outlined—the House Price Index, implied deflators and Purchasing Power Parity.

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What Is a Price Index?,ge in the price level. Then we consider the potential inputs to such a process and then discuss how such inputs might be used to produce meaningful estimates of the change in the price level, some of the methods for which we have already met in Chap. 3.