Methodological concerns on inflation calculation
Some days ago, a local bank’s report raised some doubts regarding the way in which the prices of some goods have being collected by the National Office of Statistics (INE). In particular, the report indicated that the evolution of some prices has been underestimated due to methodological failures. INE published last week a public statement tackling this issue. INE indicated that a new basket for the CPI is being prepared. The new CPI will be published on February 2014. Additionally, INE informed that it is going to convoke a group of international experts “to analyze the issue" (the methodological problem that it could be generating an underestimation of inflation and potentially solutions for the new basket). With information available so far, any estimation of the impact of the potential methodological problems would exhibit a significant variance.