Analyses | Regional and economic development | 2021-02-08 | HKET

How to adjust the measurement error of CPI caused by the pandemic?

People’s spending pattern has significantly changed due to the COVID-19 pandemic. A working paper released earlier by the International Monetary Fund pointed out that the rapid changes made the expenditure weights of the consumer price index (CPI) suddenly obsolete, affecting its accuracy and leading to an underestimation of inflation. This analysis will discuss how to improve the inaccuracy of CPI.

The full version of the commentary is in Chinese only.