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Does the Chinese official CPI underestimate inflation?

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  • Imad Moosa

Abstract

This paper examines the behaviour of the Chinese official CPI relative to a market-based index. The empirical results indicate that the official 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 quantity rationing.

Suggested Citation

  • Imad Moosa, 1997. "Does the Chinese official CPI underestimate inflation?," Applied Economics Letters, Taylor & Francis Journals, vol. 4(5), pages 301-304.
    • Handle: RePEc:taf:apeclt:v:4:y:1997:i:5:p:301-304
    DOI: 10.1080/758532597
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    Cited by:

    1. Holz, Carsten A, 2013. "Chinese statistics: classification systems and data sources," MPRA Paper 43869, University Library of Munich, Germany.
    2. Onur Sunal & Özge Sezgin Alp, 2016. "Effect of different price indices on linkage between real GDP growth and real minimum wage growth in Turkey," Journal of Economic and Financial Studies (JEFS), LAR Center Press, vol. 4(1), pages 1-10, February.

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