Abstract

CUPE C., Ernesto. A NEW MEASURE OFPERCEIVEDINFLATION: METHODOLOGY AND APPLICATION TO BOLIVIAN ECONOMY. Investig@ UMSA [online]. 2011, vol.2, n.2, pp. 11-26. ISSN 2220-7139.

This paper develops and applies a new methodology to measure perceived inflation. It is assumed that consumers, regardless the expenditure composition, shape their perceived inflation related directly to changes in prices. A measure of that perception is yield of dual synthetic indicators based on observed prices, this new proposal allows quantify perceived inflation and also their principal determinants in terms ofthe components of consume bas-quet. As application of the new methodology, we quantify a general idea that perceived inflation in Bolivian economy is highly determinatedby the evolution prices offood both in high inflation and low inflation periods.

Keywords : Inflation; Perceived Inflation; Consumer Price Index; Dual Synthetic Indicators; Factors; Factorial Axis.