Some CPI indexes inappropriate for inflation targeting, says Leyland

numbers-board

The construction of some indexes of inflation and the use of a single index to meet multiple goals, including that of inflation targeting, may need to change, if central banks want to fulfil their mandates appropriately, according to Jill Leyland, a vice-president of the Royal Statistical Society.

Leyland explains in a forthcoming edition of the Central Banking Journal that the majority of consumer price indexes (CPIs) were originally designed as ‘escalators' for the purposes of adjusting wages,

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: