Apples and oranges: relative growth rate of consumer price indices

Kitov, Ivan (2009): Apples and oranges: relative growth rate of consumer price indices.

Abstract

Headline CPI, core CPI, and indices for various small expenditure categories were analyzed. Sustainable long-term linear trends have been found in the difference between the headline CPI and these indices. Overall, the results completely support our previous findings for such principal categories as energy, food, housing, etc. One should return to relative price of apples and oranges in order to explain these linear trends in terms of the mainstream economics.

• Item Type: MPRA Paper
• Language: English
• Keywords: CPI, core CPI, expenditure categories, price index
• Subjects: G - Financial Economics > G1 - General Financial Markets > G12 - Asset Pricing ; Trading Volume ; Bond Interest Rates; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E31 - Price Level ; Inflation ; Deflation; D - Microeconomics > D4 - Market Structure, Pricing, and Design > D40 - General; E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E37 - Forecasting and Simulation: Models and Applications

References

Kitov, I., Kitov, O., (2008). Long-Term Linear Trends In Consumer Price Indices, Journal of Applied Economic Sciences, vol. 3(2(4)_Summ), pp. 101-112, Spiru Haret University, Faculty of Financial Management and Accounting Craiova.