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Inflation: Official Statistics Misrepresent Real Rates


(Andrzej Rostek/Getty Images)
Setting the record straight on Purchasing Power Parity.
The year 2020 ended with an inflation bang in the 14 countries listed on Hanke’s Inflation Dashboard. To qualify for entry, a country had to end the year with an annual inflation rate of 25 percent or more. I made the measurements of each country’s inflation by using high-frequency, free-market exchange-rate data in combination with Purchasing Power Parity (PPP) theory. For countries with elevated inflation rates, the PPP method has proven very accurate and reliable.
It is important to stress that my PPP inflation measures diverge from the last recorded official measures for each country (see the table below). For example, the accurate PPP inflation rate for Argentina on December 31, 2020, was 120 percent per year, whereas the last officially reported inflation rate, for November 2020, was 35.8 percent per year. Why was there such a huge gap between my PPP measuremen ....

Castillay Leóp , Jacob Frenkel , Jamie Powell , Steve Hanke , Gustav Cassel , Andrzej Rostek Getty , International Monetary Fund , Salamanca School , Getty Images , Purchasing Power , Purchasing Power Parity , Inflation Dashboard , Economic Journal , Weimar Germany , ஜாகோப் ப்ரெங்கேழ் , ஜேமி போவல் , ஸ்டீவ் ஹான்கே , குஸ்டாவ் கேசல் , சர்வதேச பண நிதி , சலாமன்கா பள்ளி , கெட்டி படங்கள் , வாங்குதல் பவர் , வாங்குதல் பவர் சமநிலை , வீக்கம் டாஷ்போர்டு , பொருளாதார இதழ் , வீமர் ஜெர்மனி ,

Hanke's Inflation Dashboard: Official Statistics Misrepresent Real Inflation Rates


Hanke’s Inflation Dashboard: Official Statistics Misrepresent Real Inflation Rates
Steve H. Hanke
© Andrzej Rostek/Getty Images
The year 2020 ended with an inflation bang in the 14 countries listed on Hanke’s Inflation Dashboard. To qualify for entry, a country had to end the year with an annual inflation rate of 25 percent or more. I made the measurements of each country’s inflation by using high-frequency, free-market exchange-rate data in combination with Purchasing Power Parity (PPP) theory. For countries with elevated inflation rates, the PPP method has proven very accurate and reliable.
It is important to stress that my PPP inflation measures diverge from the last recorded official measures for each country (see the table below). For example, the accurate PPP inflation rate for Argentina on December 31, 2020, was 120 percent per year, whereas the last officially reported inflation rate, for November 2020, was 35.8 percent per year. Wh ....

Castillay Leóp , Jacob Frenkel , Jamie Powell , Steve Hanke , Gustav Cassel , Andrzej Rostek Getty , International Monetary Fund , Salamanca School , Purchasing Power Parity , Inflation Dashboard , Economic Journal , Weimar Germany , ஜாகோப் ப்ரெங்கேழ் , ஜேமி போவல் , ஸ்டீவ் ஹான்கே , குஸ்டாவ் கேசல் , சர்வதேச பண நிதி , சலாமன்கா பள்ளி , வாங்குதல் பவர் சமநிலை , வீக்கம் டாஷ்போர்டு , பொருளாதார இதழ் , வீமர் ஜெர்மனி ,