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Benchmarking clothing inflation - 2018

  • 1.  Benchmarking clothing inflation - 2018

    Posted 21-03-2018 15:35
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    Attached is my 2018 (and probably my last) version of such analyses based on the weights published by ONS on 20th March 2018.

    If one assumes a constant relative volume share for Clothing and Footwear relative to other items, a reasonable measure of Clothing inflation lies in between the CPI and RPI measures and slightly closer to the CPI measure.

    However, given that real earnings have been falling for most of the period since 2010, one might expect clothing to have a falling relative share, as it is essentially a capital good and also deferrable in many respects.  On this assumption the RPI measure is closer to reality.

    GJ




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