Home  Journals  Finance and Credit  15(399) - 2010 April

Inflation management based on the Basket of Consumer Goods

Available online: 16 April 2010

Subject Heading: Inflation

JEL Classification: 

The paper demonstrates that inflation on the consumer market can be managed by reducing its rate and lowering inflation-related risks. An approach is introduced based on treating the inflation risks of particular ingredients of the consumer goods basket as components of a whole complex, rather than separate units. The proposed management strategy is focused on the degree of correlation between the rates of price increase of the consumer goods in the basket.

Keywords: inflation rate, consumer goods basket, risk, correlation, consumer price index, mathematical expectation, probability

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ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

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