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Food Price Dynamics and Price Adjustment in the EU$
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Steve McCorriston

Print publication date: 2015

Print ISBN-13: 9780198732396

Published to Oxford Scholarship Online: November 2015

DOI: 10.1093/acprof:oso/9780198732396.001.0001

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The Use of Scanner Data for Measuring Food Inflation

The Use of Scanner Data for Measuring Food Inflation

Chapter:
(p.122) Chapter 6 The Use of Scanner Data for Measuring Food Inflation
Source:
Food Price Dynamics and Price Adjustment in the EU
Author(s):

Elena Castellari

Daniele Moro

Silvia Platoni

Paolo Sckokai

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780198732396.003.0006

The potential of scanner data in addressing retail pricing issues is wide ranging. This chapter considers the advantages and disadvantages of using scanner data for computing food price indices and measuring inflation, as compared to the ‘conventional’ way of calculating inflation used by the statistical agencies. A special focus is on the use of superlative price indices employing a flexible basket of products. Examples of index and inflation calculations are discussed using scanner data referring to dairy products in Italy. The chapter shows that measures of food inflation can vary by product (national brands or private labels) through to the outlets in which the products are sold. These insights from measuring inflation using scanner data are not accessible by conventional means of collecting price data for inflation measurement, which tend to misrepresent the degree of price changes that can actually occur in the retail sector.

Keywords:   food price indices, scanner data, superlative price indices, index calculation, retail pricing, inflation

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