DOES THE CHINESE OFFICIAL CPI UNDERESTIMATE INFLATION

Authors
MOOSA IA
Citation
Ia. Moosa, DOES THE CHINESE OFFICIAL CPI UNDERESTIMATE INFLATION, Applied economics letters, 4(5), 1997, pp. 301-304
Citations number
6
Categorie Soggetti
Economics
Journal title
Applied economics letters → ACNP
ISSN journal
13504851
Volume
4
Issue
5
Year of publication
1997
Pages
301 - 304
Database
ISI
SICI code
1350-4851(1997)4:5<301:DTCOCU>2.0.ZU;2-Z
Abstract
This paper examines the behaviour of the Chinese official CPI relative to a market-based index. The empirical results indicate that the offi cial index underestimates the actual inflation rate and that the bias is time-varying. The biasedness of the official index is attributed to covert price rises induced by the presence of price controls and quan tity rationing.