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A New Weighted Food CPI from Scanner Big Data in China

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  • Zhenkun Zhou
  • Zikun Song
  • Tao Ren

Abstract

Scanner big data has potential to construct Consumer Price Index (CPI). The study introduces a new weighted price index called S-FCPIw, which is constructed using scanner big data from retail sales in China. We address the limitations of China's CPI especially for its high cost and untimely release, and demonstrate the reliability of S-FCPIw by comparing it with existing price indices. S-FCPIw can not only reflect the changes of goods prices in higher frequency and richer dimension, and the analysis results show that S-FCPIw has a significant and strong relationship with CPI and Food CPI. The findings suggest that scanner big data can supplement traditional CPI calculations in China and provide new insights into macroeconomic trends and inflation prediction. We have made S-FCPIw publicly available and update it on a weekly basis to facilitate further study in this field.

Suggested Citation

  • Zhenkun Zhou & Zikun Song & Tao Ren, 2023. "A New Weighted Food CPI from Scanner Big Data in China," Papers 2310.04242, arXiv.org, revised Oct 2023.
    • Handle: RePEc:arx:papers:2310.04242
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    References listed on IDEAS

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    1. Ivancic, Lorraine & Erwin Diewert, W. & Fox, Kevin J., 2011. "Scanner data, time aggregation and the construction of price indexes," Journal of Econometrics, Elsevier, vol. 161(1), pages 24-35, March.
    2. de Haan, Jan & van der Grient, Heymerik A., 2011. "Eliminating chain drift in price indexes based on scanner data," Journal of Econometrics, Elsevier, vol. 161(1), pages 36-46, March.
    3. W. Erwin Diewert, 1998. "Index Number Issues in the Consumer Price Index," Journal of Economic Perspectives, American Economic Association, vol. 12(1), pages 47-58, Winter.
    4. Alberto Cavallo & Roberto Rigobon, 2016. "The Billion Prices Project: Using Online Prices for Measurement and Research," Journal of Economic Perspectives, American Economic Association, vol. 30(2), pages 151-178, Spring.
    5. Diewert, W. E., 1976. "Exact and superlative index numbers," Journal of Econometrics, Elsevier, vol. 4(2), pages 115-145, May.
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    Cited by:

    1. Zhou, Zhenkun & Wu, Danni & Su, Zhi & Ren, Tao, 2024. "Exploring the investment value of retail sales growth: Evidence from the China Retailer Alliance," Finance Research Letters, Elsevier, vol. 63(C).

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