CPI not ideal for comparing inflation rates, research finds

Photo by David Lundberg
Sveridges Riksbank

The consumer price index (CPI) is "not well suited" to making comparisons between inflation rates across the globe, according to research published by Sveriges Riksbank today (May 19).

In the economic commentary Jesper Johansson, a member of the Swedish central bank's monetary policy department, considers the difficulty of calculating and analysing changes in the CPI.

One reason it is poorly suited for comparisons, he says, is that "housing costs are measured differently in different countries"

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