Inflation Measurement and its Assessment in the Ecb's Monetary Policy Strategy Review

This paper – which takes into consideration overall experience with the Harmonised Index of Consumer Prices (HICP) as well improvements made to this measure inflation since 2003 finds that HICP continues fulfil prerequisites for index underlying ECB’s definition price stability. Nonetheless, there is scope enhancing HICP, especially by including owner-occupied housing (OOH) using net acquisitions approach. Filling long-standing gap utmost importance increase coverage and cross-country comparability HICP. In addition integrating OOH further would be welcome in harmonisation, regarding treatment product replacement quality adjustment. Such measures may also help reduce measurement bias still exists Overall, a knowledge concerning exact size remains, calls research. More generally, auxiliary can play an important role economic monetary analyses. applies not only analytical series OOH, but or cost living index. JEL Classification: C43, C52, C82, E31, E52