METHODOLOGICAL ISSUES IN MEASURING COUNTRIES INFLATION

Karadjova, Vera and Trajkov, Aleksandar and Andreeski, Cvetko (2022) METHODOLOGICAL ISSUES IN MEASURING COUNTRIES INFLATION. XII International Conference on Economy, Business & Society in Digitalized Environment (EBSiDE 2022), XII. pp. 245-257. ISSN 978-9989-695-70-4

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Abstract

The paper intends to analyze the methodological aspects of inflation measurement through comparative analysis of three inflation measures, i.e. the strengths and weaknesses of certain inflation indicators. Besides to unemployment and economic growth, the problem of inflation is one of the three central problems in macroeconomic analysis. Inflation is a complex phenomenon and a serious disturbance of the stability of contemporary financial systems. The causal intertwining of the financial and real sector of the economy makes inflation an even more serious disturbance of the macroeconomic balance, and in that sense imposes the need to manage it as an imperative. But the number of economic categories and other factors that directly or indirectly affect inflation make some difficulties in its measurement, and imply a number of indicators through which its rate is determined and monitored.
The simplest determination of inflation as a general increase in the price level is an issue of interest for a number of entities and is subject to assessment, measurement and analysis by professional and scientific, but also political and business groups. Starting from the simplest explanation of the phenomenon of inflation as a condition in the economy when monetary (purchasing) funds exceed commodity funds, the key question refers to the indicators used to measure such a condition and their methodological processing. In conditions of strong inflation risk, the paper elaborates the most important methodological issues in measuring inflation in countries around the world (on the example of Macedonia, Serbia, Slovenia and EMU) through several commonly used indicators, including: Consumer Price Index - (CPI) - Consumer prices (annual%), GDP deflator (annual%), Food production index etc. Monitoring the annual changes of these indicators will show their methodological strengths and weaknesses and the need for their combined use.

Keywords: Inflation, Consumer Price Index – (CPI), Consumer Prices (Annual %), GDP Deflator (annual %), Food Production Index

Item Type:	Article
Uncontrolled Keywords:	Inflation, Consumer Price Index – (CPI), Consumer Prices (Annual %), GDP Deflator (annual %), Food Production Index
Subjects:	Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions:	Faculty of Tourism and Hospitality
Depositing User:	Prof. d-r Vera Karadjova
Date Deposited:	15 Dec 2022 14:00
Last Modified:	15 Dec 2022 14:00
URI:	https://eprints.uklo.edu.mk/id/eprint/7477

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